Correlation Between CureVac NV and Immuneering Corp

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

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

Diversification Opportunities for CureVac NV and Immuneering Corp

0.61

Correlation Coefficient

CureVac NV  Immuneering Corp

Poor diversification

The 3 months correlation between CureVac and Immuneering is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Immuneering Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuneering Corp 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 Immuneering Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuneering Corp has no effect on the direction of CureVac NV i.e., CureVac NV and Immuneering Corp go up and down completely randomly.

Pair Corralation between CureVac NV and Immuneering Corp

Given the investment horizon of 90 days CureVac NV is expected to generate 0.74 times more return on investment than Immuneering Corp. However, CureVac NV is 1.35 times less risky than Immuneering Corp. It trades about 0.2 of its potential returns per unit of risk. Immuneering Corp is currently generating about 0.05 per unit of risk. If you would invest  287.00  in CureVac NV on October 10, 2024 and sell it today you would earn a total of  181.00  from holding CureVac NV or generate 63.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

CureVac NV  vs.  Immuneering Corp

CureVac NV

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CureVac NV are ranked lower than 15 (%) 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.

Immuneering Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Immuneering Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Immuneering Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CureVac NV and Immuneering Corp

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

The idea behind CureVac NV and Immuneering Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.