Correlation Between Church Dwight and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Church Dwight 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 Church Dwight and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Church Dwight and Valneva SE ADR, you can compare the effects of market volatilities on Church Dwight 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 Church Dwight with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Church Dwight and Valneva SE.
Diversification Opportunities for Church Dwight and Valneva SE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Church and Valneva is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Church Dwight 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 Church Dwight 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 Church Dwight 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 Church Dwight i.e., Church Dwight and Valneva SE go up and down completely randomly.
Pair Corralation between Church Dwight and Valneva SE
Considering the 90-day investment horizon Church Dwight is expected to generate 0.51 times more return on investment than Valneva SE. However, Church Dwight is 1.95 times less risky than Valneva SE. It trades about 0.32 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.58 per unit of risk. If you would invest 10,078 in Church Dwight on August 27, 2024 and sell it today you would earn a total of 963.00 from holding Church Dwight or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Church Dwight vs. Valneva SE ADR
Performance |
| Timeline |
| Church Dwight |
| Valneva SE ADR |
Church Dwight and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Church Dwight and Valneva SE
The main advantage of trading using opposite Church Dwight and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Church Dwight 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.| Church Dwight vs. Kimberly Clark | Church Dwight vs. Colgate Palmolive | Church Dwight vs. Unilever PLC ADR | Church Dwight vs. Procter Gamble |
| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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