Correlation Between Ballard Power and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Ballard Power 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 Ballard Power and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballard Power Systems and CureVac NV, you can compare the effects of market volatilities on Ballard Power 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 Ballard Power with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballard Power and CureVac NV.
Diversification Opportunities for Ballard Power and CureVac NV
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ballard and CureVac is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ballard Power Systems and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Ballard Power 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 Ballard Power Systems 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 Ballard Power i.e., Ballard Power and CureVac NV go up and down completely randomly.
Pair Corralation between Ballard Power and CureVac NV
Assuming the 90 days horizon Ballard Power Systems is expected to under-perform the CureVac NV. But the stock apears to be less risky and, when comparing its historical volatility, Ballard Power Systems is 1.13 times less risky than CureVac NV. The stock trades about -0.05 of its potential returns per unit of risk. The CureVac NV is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 690.00 in CureVac NV on November 27, 2024 and sell it today you would lose (378.00) from holding CureVac NV or give up 54.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ballard Power Systems vs. CureVac NV
Performance |
| Timeline |
| Ballard Power Systems |
| CureVac NV |
Ballard Power and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ballard Power and CureVac NV
The main advantage of trading using opposite Ballard Power and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballard Power 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.| Ballard Power vs. Powercell Sweden | Ballard Power vs. Nel ASA | Ballard Power vs. ITM Power Plc | Ballard Power vs. Plug Power |
| CureVac NV vs. Novo Nordisk AS | CureVac NV vs. CSL LTD SPONADR | CureVac NV vs. CSL Limited | CureVac NV vs. Mercedes Benz Group AG |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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