Correlation Between CureVac NV and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both CureVac NV and Xenetic Biosciences 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 Xenetic Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CureVac NV and Xenetic Biosciences, you can compare the effects of market volatilities on CureVac NV and Xenetic Biosciences 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 Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of CureVac NV and Xenetic Biosciences.
Diversification Opportunities for CureVac NV and Xenetic Biosciences
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CureVac and Xenetic is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences 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 Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of CureVac NV i.e., CureVac NV and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between CureVac NV and Xenetic Biosciences
Given the investment horizon of 90 days CureVac NV is expected to under-perform the Xenetic Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, CureVac NV is 1.12 times less risky than Xenetic Biosciences. The stock trades about -0.04 of its potential returns per unit of risk. The Xenetic Biosciences is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 310.00 in Xenetic Biosciences on October 16, 2024 and sell it today you would earn a total of 98.00 from holding Xenetic Biosciences or generate 31.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CureVac NV vs. Xenetic Biosciences
Performance |
| Timeline |
| CureVac NV |
| Xenetic Biosciences |
CureVac NV and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CureVac NV and Xenetic Biosciences
The main advantage of trading using opposite CureVac NV and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CureVac NV position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' long position.| CureVac NV vs. BJs Restaurants | CureVac NV vs. Pinterest | CureVac NV vs. Biglari Holdings | CureVac NV vs. Radcom |
| Xenetic Biosciences vs. Ginkgo Bioworks Holdings | Xenetic Biosciences vs. CureVac NV | Xenetic Biosciences vs. Iovance Biotherapeutics | Xenetic Biosciences vs. Krystal Biotech |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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