Correlation Between CureVac NV and Novavax

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

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

Diversification Opportunities for CureVac NV and Novavax

0.37

Correlation Coefficient

CureVac NV  Novavax

Weak diversification

The 3 months correlation between CureVac and Novavax is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Novavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novavax 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 Novavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novavax has no effect on the direction of CureVac NV i.e., CureVac NV and Novavax go up and down completely randomly.

Pair Corralation between CureVac NV and Novavax

Given the investment horizon of 90 days CureVac NV is expected to generate 0.69 times more return on investment than Novavax. However, CureVac NV is 1.45 times less risky than Novavax. It trades about 0.02 of its potential returns per unit of risk. Novavax is currently generating about -0.05 per unit of risk. If you would invest  355.00  in CureVac NV on February 3, 2025 and sell it today you would earn a total of  1.00  from holding CureVac NV or generate 0.28% return on investment over 90 days.

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

CureVac NV  vs.  Novavax

CureVac NV

Risk-Adjusted Performance

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.

Novavax

Risk-Adjusted Performance

Very Weak

Over the last 90 days Novavax 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 basic indicators remain fairly strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CureVac NV and Novavax

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

The idea behind CureVac NV and Novavax 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.