Correlation Between Burgenland Holding and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Burgenland Holding 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 Burgenland Holding and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burgenland Holding Aktiengesellschaft and Valneva SE, you can compare the effects of market volatilities on Burgenland Holding 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 Burgenland Holding with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burgenland Holding and Valneva SE.
Diversification Opportunities for Burgenland Holding and Valneva SE
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Burgenland and Valneva is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Burgenland Holding Aktiengesel and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE and Burgenland Holding 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 Burgenland Holding Aktiengesellschaft 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 Burgenland Holding i.e., Burgenland Holding and Valneva SE go up and down completely randomly.
Pair Corralation between Burgenland Holding and Valneva SE
Assuming the 90 days trading horizon Burgenland Holding Aktiengesellschaft is expected to generate 0.36 times more return on investment than Valneva SE. However, Burgenland Holding Aktiengesellschaft is 2.77 times less risky than Valneva SE. It trades about 0.01 of its potential returns per unit of risk. Valneva SE is currently generating about -0.19 per unit of risk. If you would invest 7,150 in Burgenland Holding Aktiengesellschaft on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Burgenland Holding Aktiengesellschaft or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burgenland Holding Aktiengesel vs. Valneva SE
Performance |
| Timeline |
| Burgenland Holding |
| Valneva SE |
Burgenland Holding and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burgenland Holding and Valneva SE
The main advantage of trading using opposite Burgenland Holding and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burgenland Holding 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.| Burgenland Holding vs. EVN AG | Burgenland Holding vs. AGRANA Beteiligungs Aktiengesellschaft | Burgenland Holding vs. Palfinger AG | Burgenland Holding vs. Rosenbauer International AG |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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