Correlation Between HCW Biologics and CureVac NV
Can any of the company-specific risk be diversified away by investing in both HCW Biologics 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 HCW Biologics and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCW Biologics and CureVac NV, you can compare the effects of market volatilities on HCW Biologics 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 HCW Biologics with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCW Biologics and CureVac NV.
Diversification Opportunities for HCW Biologics and CureVac NV
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HCW and CureVac is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding HCW Biologics and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and HCW Biologics 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 HCW Biologics 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 HCW Biologics i.e., HCW Biologics and CureVac NV go up and down completely randomly.
Pair Corralation between HCW Biologics and CureVac NV
Given the investment horizon of 90 days HCW Biologics is expected to generate 7.75 times more return on investment than CureVac NV. However, HCW Biologics is 7.75 times more volatile than CureVac NV. It trades about 0.04 of its potential returns per unit of risk. CureVac NV is currently generating about -0.06 per unit of risk. If you would invest 109.00 in HCW Biologics on August 30, 2024 and sell it today you would lose (59.00) from holding HCW Biologics or give up 54.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HCW Biologics vs. CureVac NV
Performance |
| Timeline |
| HCW Biologics |
| CureVac NV |
HCW Biologics and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCW Biologics and CureVac NV
The main advantage of trading using opposite HCW Biologics and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCW Biologics 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.| HCW Biologics vs. Anebulo Pharmaceuticals | HCW Biologics vs. Rezolute | HCW Biologics vs. Eliem Therapeutics | HCW Biologics vs. Molecular Partners AG |
| CureVac NV vs. Ikena Oncology | CureVac NV vs. Eliem Therapeutics | CureVac NV vs. HCW Biologics | CureVac NV vs. Tempest 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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