Correlation Between Novavax and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Novavax 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 Novavax and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novavax and CureVac NV, you can compare the effects of market volatilities on Novavax 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 Novavax with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novavax and CureVac NV.
Diversification Opportunities for Novavax and CureVac NV
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Novavax and CureVac is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Novavax and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Novavax 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 Novavax 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 Novavax i.e., Novavax and CureVac NV go up and down completely randomly.
Pair Corralation between Novavax and CureVac NV
Assuming the 90 days trading horizon Novavax is expected to under-perform the CureVac NV. But the stock apears to be less risky and, when comparing its historical volatility, Novavax is 1.05 times less risky than CureVac NV. The stock trades about -0.12 of its potential returns per unit of risk. The CureVac NV is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 250.00 in CureVac NV on August 25, 2024 and sell it today you would lose (1.00) from holding CureVac NV or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Novavax vs. CureVac NV
Performance |
| Timeline |
| Novavax |
| CureVac NV |
Novavax and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novavax and CureVac NV
The main advantage of trading using opposite Novavax and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novavax 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.| Novavax vs. CSL Limited | Novavax vs. Superior Plus Corp | Novavax vs. NMI Holdings | Novavax vs. Origin Agritech |
| CureVac NV vs. CSL Limited | CureVac NV vs. Superior Plus Corp | CureVac NV vs. NMI Holdings | CureVac NV vs. Origin Agritech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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