Correlation Between CureVac NV and Impact BioMedical,

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

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

Diversification Opportunities for CureVac NV and Impact BioMedical,

-0.26

Correlation Coefficient

CureVac NV  Impact BioMedical,

Very good diversification

The 3 months correlation between CureVac and Impact is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Impact BioMedical, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact BioMedical, 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 Impact BioMedical,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact BioMedical, has no effect on the direction of CureVac NV i.e., CureVac NV and Impact BioMedical, go up and down completely randomly.

Pair Corralation between CureVac NV and Impact BioMedical,

Given the investment horizon of 90 days CureVac NV is expected to under-perform the Impact BioMedical,. But the stock apears to be less risky and, when comparing its historical volatility, CureVac NV is 2.57 times less risky than Impact BioMedical,. The stock trades about -0.02 of its potential returns per unit of risk. The Impact BioMedical, is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  268.00  in Impact BioMedical, on October 11, 2024 and sell it today you would lose (88.00) from holding Impact BioMedical, or give up 32.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	16.36%
Values	Daily Returns

CureVac NV  vs.  Impact BioMedical,

CureVac NV

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CureVac NV are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, CureVac NV exhibited solid returns over the last few months and may actually be approaching a breakup point.

Impact BioMedical,

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Impact BioMedical, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental drivers, Impact BioMedical, displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CureVac NV and Impact BioMedical,

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

The idea behind CureVac NV and Impact BioMedical, 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.