Correlation Between CureVac NV and Viking Therapeutics
Can any of the company-specific risk be diversified away by investing in both CureVac NV and Viking Therapeutics 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 Viking Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CureVac NV and Viking Therapeutics, you can compare the effects of market volatilities on CureVac NV and Viking Therapeutics 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 Viking Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CureVac NV and Viking Therapeutics.
Diversification Opportunities for CureVac NV and Viking Therapeutics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CureVac and Viking is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Viking Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Therapeutics 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 Viking Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Therapeutics has no effect on the direction of CureVac NV i.e., CureVac NV and Viking Therapeutics go up and down completely randomly.
Pair Corralation between CureVac NV and Viking Therapeutics
Given the investment horizon of 90 days CureVac NV is expected to generate 0.72 times more return on investment than Viking Therapeutics. However, CureVac NV is 1.39 times less risky than Viking Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Viking Therapeutics is currently generating about -0.26 per unit of risk. If you would invest 289.00 in CureVac NV on August 30, 2024 and sell it today you would lose (2.00) from holding CureVac NV or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CureVac NV vs. Viking Therapeutics
Performance |
| Timeline |
| CureVac NV |
| Viking Therapeutics |
CureVac NV and Viking Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CureVac NV and Viking Therapeutics
The main advantage of trading using opposite CureVac NV and Viking Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CureVac NV position performs unexpectedly, Viking Therapeutics 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 Viking Therapeutics will offset losses from the drop in Viking Therapeutics' long position.| CureVac NV vs. Ikena Oncology | CureVac NV vs. Eliem Therapeutics | CureVac NV vs. HCW Biologics | CureVac NV vs. RenovoRx |
| Viking Therapeutics vs. Terns Pharmaceuticals | Viking Therapeutics vs. Akero Therapeutics | Viking Therapeutics vs. Madrigal Pharmaceuticals | Viking Therapeutics vs. Sarepta 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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