Correlation Between CureVac NV and Anavex Life
Can any of the company-specific risk be diversified away by investing in both CureVac NV and Anavex Life at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CureVac NV and Anavex Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CureVac NV and Anavex Life Sciences, you can compare the effects of market volatilities on CureVac NV and Anavex Life and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CureVac NV with a short position of Anavex Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of CureVac NV and Anavex Life.
Diversification Opportunities for CureVac NV and Anavex Life
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CureVac and Anavex is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Anavex Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anavex Life Sciences and CureVac NV is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CureVac NV are associated (or correlated) with Anavex Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anavex Life Sciences has no effect on the direction of CureVac NV i.e., CureVac NV and Anavex Life go up and down completely randomly.
Pair Corralation between CureVac NV and Anavex Life
Given the investment horizon of 90 days CureVac NV is expected to generate 111.43 times less return on investment than Anavex Life. But when comparing it to its historical volatility, CureVac NV is 2.05 times less risky than Anavex Life. It trades about 0.01 of its potential returns per unit of risk. Anavex Life Sciences is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 572.00 in Anavex Life Sciences on August 30, 2024 and sell it today you would earn a total of 331.00 from holding Anavex Life Sciences or generate 57.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CureVac NV vs. Anavex Life Sciences
Performance |
| Timeline |
| CureVac NV |
| Anavex Life Sciences |
CureVac NV and Anavex Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CureVac NV and Anavex Life
The main advantage of trading using opposite CureVac NV and Anavex Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CureVac NV position performs unexpectedly, Anavex Life can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anavex Life will offset losses from the drop in Anavex Life's long position.| CureVac NV vs. Celsius Holdings | CureVac NV vs. Nascent Wine | CureVac NV vs. Naked Wines plc | CureVac NV vs. SNDL Inc |
| Anavex Life vs. Cassava Sciences | Anavex Life vs. INmune Bio | Anavex Life vs. Biovie Inc | Anavex Life vs. Cognition Therapeutics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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