Correlation Between Addiko Bank and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Addiko Bank and Valneva SE 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 Addiko Bank and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addiko Bank AG and Valneva SE, you can compare the effects of market volatilities on Addiko Bank and Valneva SE 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 Addiko Bank with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addiko Bank and Valneva SE.
Diversification Opportunities for Addiko Bank and Valneva SE
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Addiko and Valneva is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Addiko Bank AG and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE and Addiko Bank 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 Addiko Bank AG are associated (or correlated) with Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE has no effect on the direction of Addiko Bank i.e., Addiko Bank and Valneva SE go up and down completely randomly.
Pair Corralation between Addiko Bank and Valneva SE
Assuming the 90 days trading horizon Addiko Bank AG is expected to generate 0.44 times more return on investment than Valneva SE. However, Addiko Bank AG is 2.26 times less risky than Valneva SE. It trades about 0.07 of its potential returns per unit of risk. Valneva SE is currently generating about -0.04 per unit of risk. If you would invest 1,045 in Addiko Bank AG on September 14, 2024 and sell it today you would earn a total of 825.00 from holding Addiko Bank AG or generate 78.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Addiko Bank AG vs. Valneva SE
Performance |
| Timeline |
| Addiko Bank AG |
| Valneva SE |
Addiko Bank and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addiko Bank and Valneva SE
The main advantage of trading using opposite Addiko Bank and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addiko Bank position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| Addiko Bank vs. Raiffeisen Bank International | Addiko Bank vs. BAWAG Group AG | Addiko Bank vs. Wiener Privatbank SE |
| Valneva SE vs. SBM Offshore NV | Valneva SE vs. Erste Group Bank | Valneva SE vs. Vienna Insurance Group | Valneva SE vs. Addiko Bank AG |
Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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