Correlation Between Zura Bio and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Zura Bio 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 Zura Bio and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and CureVac NV, you can compare the effects of market volatilities on Zura Bio 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 Zura Bio with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and CureVac NV.
Diversification Opportunities for Zura Bio and CureVac NV
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zura and CureVac is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Zura Bio 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 Zura Bio Limited 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 Zura Bio i.e., Zura Bio and CureVac NV go up and down completely randomly.
Pair Corralation between Zura Bio and CureVac NV
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the CureVac NV. In addition to that, Zura Bio is 1.82 times more volatile than CureVac NV. It trades about -0.35 of its total potential returns per unit of risk. CureVac NV is currently generating about -0.07 per unit of volatility. If you would invest 270.00 in CureVac NV on August 24, 2024 and sell it today you would lose (14.00) from holding CureVac NV or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zura Bio Limited vs. CureVac NV
Performance |
| Timeline |
| Zura Bio Limited |
| CureVac NV |
Zura Bio and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and CureVac NV
The main advantage of trading using opposite Zura Bio and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio 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.| Zura Bio vs. Volaris | Zura Bio vs. Western Acquisition Ventures | Zura Bio vs. SFL Corporation | Zura Bio vs. Mesa Air Group |
| CureVac NV vs. ZyVersa Therapeutics | CureVac NV vs. Sonnet Biotherapeutics Holdings | CureVac NV vs. Zura Bio Limited | CureVac NV vs. Phio Pharmaceuticals 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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