Correlation Between CureVac NV and PARK24

Can any of the company-specific risk be diversified away by investing in both CureVac NV and PARK24 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 PARK24 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CureVac NV and PARK24 LTD, you can compare the effects of market volatilities on CureVac NV and PARK24 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 PARK24. Check out your portfolio center. Please also check ongoing floating volatility patterns of CureVac NV and PARK24.

Diversification Opportunities for CureVac NV and PARK24

-0.71

Correlation Coefficient

CureVac NV  PARK24

Pay attention - limited upside

The 3 months correlation between CureVac and PARK24 is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and PARK24 LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARK24 LTD 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 PARK24. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARK24 LTD has no effect on the direction of CureVac NV i.e., CureVac NV and PARK24 go up and down completely randomly.

Pair Corralation between CureVac NV and PARK24

Assuming the 90 days horizon CureVac NV is expected to generate 3.48 times more return on investment than PARK24. However, CureVac NV is 3.48 times more volatile than PARK24 LTD. It trades about 0.16 of its potential returns per unit of risk. PARK24 LTD is currently generating about -0.17 per unit of risk. If you would invest  290.00  in CureVac NV on March 27, 2025 and sell it today you would earn a total of  173.00  from holding CureVac NV or generate 59.66% return on investment over 90 days.

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

CureVac NV  vs.  PARK24 LTD

CureVac NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CureVac NV are ranked lower than 12 (%) 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.

PARK24 LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days PARK24 LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in July 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CureVac NV and PARK24

The main advantage of trading using opposite CureVac NV and PARK24 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CureVac NV position performs unexpectedly, PARK24 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 PARK24 will offset losses from the drop in PARK24's long position.

The idea behind CureVac NV and PARK24 LTD 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.