Correlation Between United Guardian and CureVac NV

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

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

Diversification Opportunities for United Guardian and CureVac NV

0.13

Correlation Coefficient

United Guardian  CureVac NV

Average diversification

The 3 months correlation between United and CureVac is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding United Guardian and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and United Guardian 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 United Guardian 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 United Guardian i.e., United Guardian and CureVac NV go up and down completely randomly.

Pair Corralation between United Guardian and CureVac NV

Allowing for the 90-day total investment horizon United Guardian is expected to generate 14.56 times less return on investment than CureVac NV. But when comparing it to its historical volatility, United Guardian is 2.65 times less risky than CureVac NV. It trades about 0.02 of its potential returns per unit of risk. CureVac NV is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  274.00  in CureVac NV on September 27, 2024 and sell it today you would earn a total of  27.00  from holding CureVac NV or generate 9.85% return on investment over 90 days.

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

United Guardian  vs.  CureVac NV

United Guardian

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days United Guardian has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CureVac NV

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CureVac NV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, CureVac NV is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with United Guardian and CureVac NV

The main advantage of trading using opposite United Guardian and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Guardian 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 United Guardian 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.