Correlation Between Nel ASA and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Nel ASA and CureVac NV 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 Nel ASA and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nel ASA and CureVac NV, you can compare the effects of market volatilities on Nel ASA and CureVac NV 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 Nel ASA with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nel ASA and CureVac NV.
Diversification Opportunities for Nel ASA and CureVac NV
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nel and CureVac is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nel ASA and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Nel ASA 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 Nel ASA are associated (or correlated) with CureVac NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CureVac NV has no effect on the direction of Nel ASA i.e., Nel ASA and CureVac NV go up and down completely randomly.
Pair Corralation between Nel ASA and CureVac NV
Assuming the 90 days horizon Nel ASA is expected to under-perform the CureVac NV. In addition to that, Nel ASA is 1.08 times more volatile than CureVac NV. It trades about -0.34 of its total potential returns per unit of risk. CureVac NV is currently generating about -0.01 per unit of volatility. If you would invest 260.00 in CureVac NV on August 29, 2024 and sell it today you would lose (7.00) from holding CureVac NV or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nel ASA vs. CureVac NV
Performance |
| Timeline |
| Nel ASA |
| CureVac NV |
Nel ASA and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nel ASA and CureVac NV
The main advantage of trading using opposite Nel ASA and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nel ASA position performs unexpectedly, CureVac NV 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 CureVac NV will offset losses from the drop in CureVac NV's long position.| Nel ASA vs. Powercell Sweden | Nel ASA vs. ITM Power Plc | Nel ASA vs. Ballard Power Systems | Nel ASA vs. Plug Power |
| CureVac NV vs. BioNTech SE | CureVac NV vs. Moderna | CureVac NV vs. Nel ASA | CureVac NV vs. Ballard Power Systems |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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