Correlation Between CureVac NV and Inflection Point
Can any of the company-specific risk be diversified away by investing in both CureVac NV and Inflection Point 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 Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CureVac NV and Inflection Point Acquisition, you can compare the effects of market volatilities on CureVac NV and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of CureVac NV and Inflection Point.
Diversification Opportunities for CureVac NV and Inflection Point
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CureVac and Inflection is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of CureVac NV i.e., CureVac NV and Inflection Point go up and down completely randomly.
Pair Corralation between CureVac NV and Inflection Point
Given the investment horizon of 90 days CureVac NV is expected to under-perform the Inflection Point. But the stock apears to be less risky and, when comparing its historical volatility, CureVac NV is 11.1 times less risky than Inflection Point. The stock trades about -0.01 of its potential returns per unit of risk. The Inflection Point Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Inflection Point Acquisition on September 5, 2024 and sell it today you would earn a total of 1,100 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.14% |
| Values | Daily Returns |
CureVac NV vs. Inflection Point Acquisition
Performance |
| Timeline |
| CureVac NV |
| Inflection Point Acq |
CureVac NV and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CureVac NV and Inflection Point
The main advantage of trading using opposite CureVac NV and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CureVac NV position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| CureVac NV vs. Inflection Point Acquisition | CureVac NV vs. Kite Realty Group | CureVac NV vs. Radcom | CureVac NV vs. Zhihu Inc ADR |
| Inflection Point vs. Olympic Steel | Inflection Point vs. Asbury Automotive Group | Inflection Point vs. Ecolab Inc | Inflection Point vs. Simon Property Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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