Correlation Between Crispr Therapeutics and CureVac NV

Can any of the company-specific risk be diversified away by investing in both Crispr Therapeutics 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 Crispr Therapeutics and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Crispr Therapeutics AG and CureVac NV, you can compare the effects of market volatilities on Crispr Therapeutics 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 Crispr Therapeutics with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crispr Therapeutics and CureVac NV.

Diversification Opportunities for Crispr Therapeutics and CureVac NV

-0.02

Correlation Coefficient

Crispr Therapeutics  CureVac NV

Good diversification

The 3 months correlation between Crispr and CureVac is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Crispr Therapeutics AG and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Crispr Therapeutics 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 Crispr Therapeutics AG 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 Crispr Therapeutics i.e., Crispr Therapeutics and CureVac NV go up and down completely randomly.

Pair Corralation between Crispr Therapeutics and CureVac NV

Given the investment horizon of 90 days Crispr Therapeutics AG is expected to generate 0.77 times more return on investment than CureVac NV. However, Crispr Therapeutics AG is 1.29 times less risky than CureVac NV. It trades about 0.0 of its potential returns per unit of risk. CureVac NV is currently generating about -0.02 per unit of risk. If you would invest  3,865  in Crispr Therapeutics AG on December 29, 2024 and sell it today you would lose (166.00) from holding Crispr Therapeutics AG or give up 4.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Crispr Therapeutics AG  vs.  CureVac NV

Crispr Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crispr Therapeutics AG has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Crispr Therapeutics is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

CureVac NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days CureVac NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CureVac NV is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Crispr Therapeutics and CureVac NV

The main advantage of trading using opposite Crispr Therapeutics and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crispr Therapeutics 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.

The idea behind Crispr Therapeutics AG and CureVac NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.