Correlation Between CureVac NV and Powercell Sweden

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

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

Diversification Opportunities for CureVac NV and Powercell Sweden

0.07

Correlation Coefficient

CureVac NV  Powercell Sweden

Significant diversification

The 3 months correlation between CureVac and Powercell is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Powercell Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powercell Sweden 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 Powercell Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powercell Sweden has no effect on the direction of CureVac NV i.e., CureVac NV and Powercell Sweden go up and down completely randomly.

Pair Corralation between CureVac NV and Powercell Sweden

Assuming the 90 days horizon CureVac NV is expected to generate 0.9 times more return on investment than Powercell Sweden. However, CureVac NV is 1.11 times less risky than Powercell Sweden. It trades about 0.17 of its potential returns per unit of risk. Powercell Sweden is currently generating about 0.09 per unit of risk. If you would invest  284.00  in CureVac NV on April 23, 2025 and sell it today you would earn a total of  176.00  from holding CureVac NV or generate 61.97% return on investment over 90 days.

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

CureVac NV  vs.  Powercell Sweden

CureVac NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CureVac NV are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CureVac NV reported solid returns over the last few months and may actually be approaching a breakup point.

Powercell Sweden

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Powercell Sweden are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Powercell Sweden reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CureVac NV and Powercell Sweden

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

The idea behind CureVac NV and Powercell Sweden 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.