Correlation Between Origin Materials and CureVac NV

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

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

Diversification Opportunities for Origin Materials and CureVac NV

0.41

Correlation Coefficient

Origin Materials  CureVac NV

Very weak diversification

The 3 months correlation between Origin and CureVac is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Origin Materials and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Origin Materials 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 Origin Materials 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 Origin Materials i.e., Origin Materials and CureVac NV go up and down completely randomly.

Pair Corralation between Origin Materials and CureVac NV

Given the investment horizon of 90 days Origin Materials is expected to under-perform the CureVac NV. In addition to that, Origin Materials is 1.09 times more volatile than CureVac NV. It trades about -0.06 of its total potential returns per unit of risk. CureVac NV is currently generating about 0.04 per unit of volatility. If you would invest  287.00  in CureVac NV on December 20, 2024 and sell it today you would earn a total of  17.00  from holding CureVac NV or generate 5.92% return on investment over 90 days.

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

Origin Materials  vs.  CureVac NV

Origin Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Origin Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

CureVac NV

Risk-Adjusted Performance

Weak

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 unsteady basic indicators, CureVac NV exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Origin Materials and CureVac NV

The main advantage of trading using opposite Origin Materials and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Materials 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 Origin Materials 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.