Correlation Between Chemours and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Chemours 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 Chemours and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Valneva SE ADR, you can compare the effects of market volatilities on Chemours 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 Chemours with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Valneva SE.
Diversification Opportunities for Chemours and Valneva SE
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chemours and Valneva is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co 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 Chemours 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 Chemours Co 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 Chemours i.e., Chemours and Valneva SE go up and down completely randomly.
Pair Corralation between Chemours and Valneva SE
Allowing for the 90-day total investment horizon Chemours Co is expected to generate 1.37 times more return on investment than Valneva SE. However, Chemours is 1.37 times more volatile than Valneva SE ADR. It trades about 0.24 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.49 per unit of risk. If you would invest 1,793 in Chemours Co on September 1, 2024 and sell it today you would earn a total of 381.00 from holding Chemours Co or generate 21.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. Valneva SE ADR
Performance |
| Timeline |
| Chemours |
| Valneva SE ADR |
Chemours and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Valneva SE
The main advantage of trading using opposite Chemours and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours 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.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |