Correlation Between Marfrig Global and CureVac NV

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

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

Diversification Opportunities for Marfrig Global and CureVac NV

0.09

Correlation Coefficient

Marfrig Global  CureVac NV

Significant diversification

The 3 months correlation between Marfrig and CureVac is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Marfrig Global 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 Marfrig Global Foods are associated (or correlated) with CureVac NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CureVac NV has no effect on the direction of Marfrig Global i.e., Marfrig Global and CureVac NV go up and down completely randomly.

Pair Corralation between Marfrig Global and CureVac NV

Assuming the 90 days horizon Marfrig Global Foods is expected to under-perform the CureVac NV. But the pink sheet apears to be less risky and, when comparing its historical volatility, Marfrig Global Foods is 1.38 times less risky than CureVac NV. The pink sheet trades about -0.22 of its potential returns per unit of risk. The CureVac NV is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  337.00  in CureVac NV on October 10, 2024 and sell it today you would earn a total of  131.00  from holding CureVac NV or generate 38.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Marfrig Global Foods  vs.  CureVac NV

Marfrig Global Foods

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marfrig Global Foods are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Marfrig Global showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Marfrig Global and CureVac NV

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

The idea behind Marfrig Global Foods and CureVac NV 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 Commodity Directory module to find actively traded commodities issued by global exchanges.