Correlation Between Mayfair Gold and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold 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 Mayfair Gold and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and CureVac NV, you can compare the effects of market volatilities on Mayfair Gold 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 Mayfair Gold with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and CureVac NV.
Diversification Opportunities for Mayfair Gold and CureVac NV
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mayfair and CureVac is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Mayfair Gold 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 Mayfair Gold Corp 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 Mayfair Gold i.e., Mayfair Gold and CureVac NV go up and down completely randomly.
Pair Corralation between Mayfair Gold and CureVac NV
Assuming the 90 days horizon Mayfair Gold Corp is expected to generate 0.61 times more return on investment than CureVac NV. However, Mayfair Gold Corp is 1.63 times less risky than CureVac NV. It trades about 0.03 of its potential returns per unit of risk. CureVac NV is currently generating about -0.02 per unit of risk. If you would invest 103.00 in Mayfair Gold Corp on August 24, 2024 and sell it today you would earn a total of 34.00 from holding Mayfair Gold Corp or generate 33.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayfair Gold Corp vs. CureVac NV
Performance |
| Timeline |
| Mayfair Gold Corp |
| CureVac NV |
Mayfair Gold and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and CureVac NV
The main advantage of trading using opposite Mayfair Gold and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold 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.| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
| CureVac NV vs. Willscot Mobile Mini | CureVac NV vs. Fortress Transp Infra | CureVac NV vs. Mesa Air Group | CureVac NV vs. Mayfair Gold Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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