Correlation Between Cresud SACIF and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF 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 Cresud SACIF and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SACIF y and Valneva SE ADR, you can compare the effects of market volatilities on Cresud SACIF 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 Cresud SACIF with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Valneva SE.
Diversification Opportunities for Cresud SACIF and Valneva SE
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cresud and Valneva is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y 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 Cresud SACIF 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 Cresud SACIF y 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 Cresud SACIF i.e., Cresud SACIF and Valneva SE go up and down completely randomly.
Pair Corralation between Cresud SACIF and Valneva SE
Assuming the 90 days horizon Cresud SACIF y is expected to generate 0.78 times more return on investment than Valneva SE. However, Cresud SACIF y is 1.29 times less risky than Valneva SE. It trades about 0.18 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.07 per unit of risk. If you would invest 721.00 in Cresud SACIF y on October 26, 2024 and sell it today you would earn a total of 556.00 from holding Cresud SACIF y or generate 77.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Cresud SACIF y vs. Valneva SE ADR
Performance |
| Timeline |
| Cresud SACIF y |
| Valneva SE ADR |
Cresud SACIF and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Valneva SE
The main advantage of trading using opposite Cresud SACIF and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF 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.| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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