Correlation Between AMAG Austria and Valneva SE
Can any of the company-specific risk be diversified away by investing in both AMAG Austria 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 AMAG Austria and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMAG Austria Metall and Valneva SE, you can compare the effects of market volatilities on AMAG Austria 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 AMAG Austria with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and Valneva SE.
Diversification Opportunities for AMAG Austria and Valneva SE
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between AMAG and Valneva is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE and AMAG Austria 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 AMAG Austria Metall 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 AMAG Austria i.e., AMAG Austria and Valneva SE go up and down completely randomly.
Pair Corralation between AMAG Austria and Valneva SE
Assuming the 90 days trading horizon AMAG Austria Metall is expected to generate 0.29 times more return on investment than Valneva SE. However, AMAG Austria Metall is 3.47 times less risky than Valneva SE. It trades about -0.02 of its potential returns per unit of risk. Valneva SE is currently generating about -0.07 per unit of risk. If you would invest 2,670 in AMAG Austria Metall on September 14, 2024 and sell it today you would lose (220.00) from holding AMAG Austria Metall or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
AMAG Austria Metall vs. Valneva SE
Performance |
| Timeline |
| AMAG Austria Metall |
| Valneva SE |
AMAG Austria and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and Valneva SE
The main advantage of trading using opposite AMAG Austria and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria 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.| AMAG Austria vs. Lenzing Aktiengesellschaft | AMAG Austria vs. Voestalpine AG | AMAG Austria vs. EVN AG | AMAG Austria vs. Facc AG |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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