Correlation Between Caribou Biosciences and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Caribou Biosciences 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 Caribou Biosciences and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caribou Biosciences and Valneva SE ADR, you can compare the effects of market volatilities on Caribou Biosciences 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 Caribou Biosciences with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caribou Biosciences and Valneva SE.
Diversification Opportunities for Caribou Biosciences and Valneva SE
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Caribou and Valneva is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Caribou Biosciences 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 Caribou Biosciences 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 Caribou Biosciences 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 Caribou Biosciences i.e., Caribou Biosciences and Valneva SE go up and down completely randomly.
Pair Corralation between Caribou Biosciences and Valneva SE
Given the investment horizon of 90 days Caribou Biosciences is expected to under-perform the Valneva SE. But the stock apears to be less risky and, when comparing its historical volatility, Caribou Biosciences is 1.11 times less risky than Valneva SE. The stock trades about -0.15 of its potential returns per unit of risk. The Valneva SE ADR is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 430.00 in Valneva SE ADR on September 25, 2024 and sell it today you would lose (11.00) from holding Valneva SE ADR or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caribou Biosciences vs. Valneva SE ADR
Performance |
| Timeline |
| Caribou Biosciences |
| Valneva SE ADR |
Caribou Biosciences and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caribou Biosciences and Valneva SE
The main advantage of trading using opposite Caribou Biosciences and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caribou Biosciences 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.| Caribou Biosciences vs. Intellia Therapeutics | Caribou Biosciences vs. Editas Medicine | Caribou Biosciences vs. Crispr Therapeutics AG | Caribou Biosciences vs. Verve Therapeutics |
| Valneva SE vs. Fate Therapeutics | Valneva SE vs. Caribou Biosciences | Valneva SE vs. Karyopharm Therapeutics | Valneva SE vs. X4 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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