Correlation Between CureVac NV and Invivyd

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

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

Diversification Opportunities for CureVac NV and Invivyd

-0.14

Correlation Coefficient

CureVac NV  Invivyd

Good diversification

The 3 months correlation between CureVac and Invivyd is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Invivyd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invivyd 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 Invivyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invivyd has no effect on the direction of CureVac NV i.e., CureVac NV and Invivyd go up and down completely randomly.

Pair Corralation between CureVac NV and Invivyd

Given the investment horizon of 90 days CureVac NV is expected to generate 15.59 times less return on investment than Invivyd. But when comparing it to its historical volatility, CureVac NV is 6.11 times less risky than Invivyd. It trades about 0.04 of its potential returns per unit of risk. Invivyd is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  44.00  in Invivyd on December 20, 2024 and sell it today you would earn a total of  28.00  from holding Invivyd or generate 63.64% return on investment over 90 days.

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

CureVac NV  vs.  Invivyd

CureVac NV

Risk-Adjusted Performance

Insignificant

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

Invivyd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Invivyd are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Invivyd exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CureVac NV and Invivyd

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

The idea behind CureVac NV and Invivyd 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.