Correlation Between CureVac NV and Exicure

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

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

Diversification Opportunities for CureVac NV and Exicure

0.21

Correlation Coefficient

CureVac NV  Exicure

Modest diversification

The 3 months correlation between CureVac and Exicure is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of CureVac NV i.e., CureVac NV and Exicure go up and down completely randomly.

Pair Corralation between CureVac NV and Exicure

Given the investment horizon of 90 days CureVac NV is expected to generate 0.63 times more return on investment than Exicure. However, CureVac NV is 1.59 times less risky than Exicure. It trades about 0.23 of its potential returns per unit of risk. Exicure is currently generating about -0.2 per unit of risk. If you would invest  321.00  in CureVac NV on October 11, 2024 and sell it today you would earn a total of  102.00  from holding CureVac NV or generate 31.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CureVac NV  vs.  Exicure

CureVac NV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CureVac NV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, CureVac NV exhibited solid returns over the last few months and may actually be approaching a breakup point.

Exicure

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exicure are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Exicure reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CureVac NV and Exicure

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

The idea behind CureVac NV and Exicure 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.

Check out your portfolio center.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.