Correlation Between DHI and Valneva SE
Can any of the company-specific risk be diversified away by investing in both DHI 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 DHI and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DHI Group and Valneva SE ADR, you can compare the effects of market volatilities on DHI 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 DHI with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DHI and Valneva SE.
Diversification Opportunities for DHI and Valneva SE
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between DHI and Valneva is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding DHI Group 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 DHI 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 DHI Group 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 DHI i.e., DHI and Valneva SE go up and down completely randomly.
Pair Corralation between DHI and Valneva SE
Considering the 90-day investment horizon DHI Group is expected to generate 0.91 times more return on investment than Valneva SE. However, DHI Group is 1.1 times less risky than Valneva SE. It trades about 0.22 of its potential returns per unit of risk. Valneva SE ADR is currently generating about 0.01 per unit of risk. If you would invest 169.00 in DHI Group on November 6, 2024 and sell it today you would earn a total of 100.00 from holding DHI Group or generate 59.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DHI Group vs. Valneva SE ADR
Performance |
| Timeline |
| DHI Group |
| Valneva SE ADR |
DHI and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DHI and Valneva SE
The main advantage of trading using opposite DHI and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DHI 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.The idea behind DHI Group and Valneva SE ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |