Correlation Between Capital Clean and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Capital Clean 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 Capital Clean and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Clean Energy and Valneva SE ADR, you can compare the effects of market volatilities on Capital Clean 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 Capital Clean with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and Valneva SE.
Diversification Opportunities for Capital Clean and Valneva SE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capital and Valneva is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy 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 Capital Clean 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 Capital Clean Energy 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 Capital Clean i.e., Capital Clean and Valneva SE go up and down completely randomly.
Pair Corralation between Capital Clean and Valneva SE
Given the investment horizon of 90 days Capital Clean Energy is expected to generate 0.54 times more return on investment than Valneva SE. However, Capital Clean Energy is 1.85 times less risky than Valneva SE. It trades about -0.06 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.62 per unit of risk. If you would invest 1,862 in Capital Clean Energy on August 29, 2024 and sell it today you would lose (47.00) from holding Capital Clean Energy or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Clean Energy vs. Valneva SE ADR
Performance |
| Timeline |
| Capital Clean Energy |
| Valneva SE ADR |
Capital Clean and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Clean and Valneva SE
The main advantage of trading using opposite Capital Clean and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean 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.| Capital Clean vs. RadNet Inc | Capital Clean vs. MACOM Technology Solutions | Capital Clean vs. Elmos Semiconductor SE | Capital Clean vs. Lipocine |
| Valneva SE vs. Bright Minds Biosciences | Valneva SE vs. HP Inc | Valneva SE vs. Intel | Valneva SE vs. Chevron 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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