Correlation Between CureVac NV and Crispr Therapeutics

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

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

Diversification Opportunities for CureVac NV and Crispr Therapeutics

-0.02

Correlation Coefficient

CureVac NV  Crispr Therapeutics

Good diversification

The 3 months correlation between CureVac and Crispr is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Crispr Therapeutics AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crispr Therapeutics and CureVac NV 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 CureVac NV are associated (or correlated) with Crispr Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crispr Therapeutics has no effect on the direction of CureVac NV i.e., CureVac NV and Crispr Therapeutics go up and down completely randomly.

Pair Corralation between CureVac NV and Crispr Therapeutics

Given the investment horizon of 90 days CureVac NV is expected to under-perform the Crispr Therapeutics. In addition to that, CureVac NV is 1.29 times more volatile than Crispr Therapeutics AG. It trades about -0.02 of its total potential returns per unit of risk. Crispr Therapeutics AG is currently generating about 0.0 per unit of volatility. 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

CureVac NV  vs.  Crispr Therapeutics AG

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.

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.

Pair Trading with CureVac NV and Crispr Therapeutics

The main advantage of trading using opposite CureVac NV and Crispr Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CureVac NV position performs unexpectedly, Crispr Therapeutics 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 Crispr Therapeutics will offset losses from the drop in Crispr Therapeutics' long position.

The idea behind CureVac NV and Crispr Therapeutics AG 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.