Correlation Between CureVac NV and Estrella Immunopharma

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

By analyzing existing cross correlation between CureVac NV and Estrella Immunopharma, you can compare the effects of market volatilities on CureVac NV and Estrella Immunopharma 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 Estrella Immunopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of CureVac NV and Estrella Immunopharma.

Diversification Opportunities for CureVac NV and Estrella Immunopharma

0.18

Correlation Coefficient

CureVac NV  Estrella Immunopharma

Average diversification

The 3 months correlation between CureVac and Estrella is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Estrella Immunopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Estrella Immunopharma 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 Estrella Immunopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Estrella Immunopharma has no effect on the direction of CureVac NV i.e., CureVac NV and Estrella Immunopharma go up and down completely randomly.

Pair Corralation between CureVac NV and Estrella Immunopharma

Given the investment horizon of 90 days CureVac NV is expected to generate 0.76 times more return on investment than Estrella Immunopharma. However, CureVac NV is 1.31 times less risky than Estrella Immunopharma. It trades about 0.02 of its potential returns per unit of risk. Estrella Immunopharma is currently generating about -0.02 per unit of risk. If you would invest  296.00  in CureVac NV on December 21, 2024 and sell it today you would earn a total of  1.00  from holding CureVac NV or generate 0.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

CureVac NV  vs.  Estrella Immunopharma

CureVac NV

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CureVac NV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, CureVac NV may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Estrella Immunopharma

Risk-Adjusted Performance

Very Weak

Over the last 90 days Estrella Immunopharma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with CureVac NV and Estrella Immunopharma

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

The idea behind CureVac NV and Estrella Immunopharma 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .