Correlation Between Aelis Farma and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Aelis Farma 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 Aelis Farma and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aelis Farma SA and Valneva SE, you can compare the effects of market volatilities on Aelis Farma 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 Aelis Farma with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aelis Farma and Valneva SE.
Diversification Opportunities for Aelis Farma and Valneva SE
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aelis and Valneva is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aelis Farma SA and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE and Aelis Farma 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 Aelis Farma SA 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 Aelis Farma i.e., Aelis Farma and Valneva SE go up and down completely randomly.
Pair Corralation between Aelis Farma and Valneva SE
Assuming the 90 days trading horizon Aelis Farma SA is expected to generate 3.02 times more return on investment than Valneva SE. However, Aelis Farma is 3.02 times more volatile than Valneva SE. It trades about 0.13 of its potential returns per unit of risk. Valneva SE is currently generating about 0.28 per unit of risk. If you would invest 200.00 in Aelis Farma SA on November 7, 2024 and sell it today you would earn a total of 48.00 from holding Aelis Farma SA or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aelis Farma SA vs. Valneva SE
Performance |
| Timeline |
| Aelis Farma SA |
| Valneva SE |
Aelis Farma and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aelis Farma and Valneva SE
The main advantage of trading using opposite Aelis Farma and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aelis Farma 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.| Aelis Farma vs. Broadpeak SA | Aelis Farma vs. Fiducial Office Solutions | Aelis Farma vs. Gaztransport Technigaz SAS | Aelis Farma vs. Exail Technologies SA |
| Valneva SE vs. Innate Pharma | Valneva SE vs. DBV Technologies SA | Valneva SE vs. Genfit | Valneva SE vs. Valneva SE ADR |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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