Correlation Between Valneva SE and Moderna
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Moderna 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 Valneva SE and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valneva SE and Moderna, you can compare the effects of market volatilities on Valneva SE and Moderna 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 Valneva SE with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Moderna.
Diversification Opportunities for Valneva SE and Moderna
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valneva and Moderna is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Valneva SE 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 Valneva SE are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Valneva SE i.e., Valneva SE and Moderna go up and down completely randomly.
Pair Corralation between Valneva SE and Moderna
Assuming the 90 days horizon Valneva SE is expected to generate 0.95 times more return on investment than Moderna. However, Valneva SE is 1.05 times less risky than Moderna. It trades about 0.0 of its potential returns per unit of risk. Moderna is currently generating about -0.05 per unit of risk. If you would invest 549.00 in Valneva SE on November 27, 2024 and sell it today you would lose (163.00) from holding Valneva SE or give up 29.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Valneva SE vs. Moderna
Performance |
| Timeline |
| Valneva SE |
| Moderna |
Valneva SE and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Moderna
The main advantage of trading using opposite Valneva SE and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| Valneva SE vs. HK Electric Investments | Valneva SE vs. Q2M Managementberatung AG | Valneva SE vs. ScanSource | Valneva SE vs. SLR Investment 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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