Correlation Between Alvotech and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Alvotech 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 Alvotech and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alvotech and Valneva SE ADR, you can compare the effects of market volatilities on Alvotech 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 Alvotech with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alvotech and Valneva SE.
Diversification Opportunities for Alvotech and Valneva SE
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alvotech and Valneva is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Alvotech and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR and Alvotech 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 Alvotech 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 ADR has no effect on the direction of Alvotech i.e., Alvotech and Valneva SE go up and down completely randomly.
Pair Corralation between Alvotech and Valneva SE
Given the investment horizon of 90 days Alvotech is expected to generate 0.58 times more return on investment than Valneva SE. However, Alvotech is 1.73 times less risky than Valneva SE. It trades about -0.09 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.42 per unit of risk. If you would invest 1,290 in Alvotech on August 24, 2024 and sell it today you would lose (46.00) from holding Alvotech or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alvotech vs. Valneva SE ADR
Performance |
| Timeline |
| Alvotech |
| Valneva SE ADR |
Alvotech and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alvotech and Valneva SE
The main advantage of trading using opposite Alvotech and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alvotech 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.| Alvotech vs. Catalent | Alvotech vs. Amphastar P | Alvotech vs. ANI Pharmaceuticals | Alvotech vs. Alkermes Plc |
| Valneva SE vs. ZyVersa Therapeutics | Valneva SE vs. Sonnet Biotherapeutics Holdings | Valneva SE vs. Zura Bio Limited | Valneva SE vs. Phio Pharmaceuticals Corp |
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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