Correlation Between Eliem Therapeutics and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Eliem Therapeutics 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 Eliem Therapeutics and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eliem Therapeutics and CureVac NV, you can compare the effects of market volatilities on Eliem Therapeutics 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 Eliem Therapeutics with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eliem Therapeutics and CureVac NV.
Diversification Opportunities for Eliem Therapeutics and CureVac NV
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eliem and CureVac is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eliem Therapeutics and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Eliem Therapeutics 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 Eliem Therapeutics 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 Eliem Therapeutics i.e., Eliem Therapeutics and CureVac NV go up and down completely randomly.
Pair Corralation between Eliem Therapeutics and CureVac NV
Given the investment horizon of 90 days Eliem Therapeutics is expected to under-perform the CureVac NV. In addition to that, Eliem Therapeutics is 1.58 times more volatile than CureVac NV. It trades about -0.29 of its total potential returns per unit of risk. CureVac NV is currently generating about -0.08 per unit of volatility. If you would invest 283.00 in CureVac NV on August 27, 2024 and sell it today you would lose (17.00) from holding CureVac NV or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Eliem Therapeutics vs. CureVac NV
Performance |
| Timeline |
| Eliem Therapeutics |
| CureVac NV |
Eliem Therapeutics and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eliem Therapeutics and CureVac NV
The main advantage of trading using opposite Eliem Therapeutics and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eliem Therapeutics 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.| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
| CureVac NV vs. Eliem Therapeutics | CureVac NV vs. HCW Biologics | CureVac NV vs. Scpharmaceuticals | CureVac NV vs. Milestone Pharmaceuticals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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