Correlation Between Evoke Pharma and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Evoke Pharma 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 Evoke Pharma and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evoke Pharma and Valneva SE ADR, you can compare the effects of market volatilities on Evoke Pharma 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 Evoke Pharma with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evoke Pharma and Valneva SE.
Diversification Opportunities for Evoke Pharma and Valneva SE
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evoke and Valneva is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Evoke Pharma 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 Evoke Pharma 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 Evoke Pharma 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 Evoke Pharma i.e., Evoke Pharma and Valneva SE go up and down completely randomly.
Pair Corralation between Evoke Pharma and Valneva SE
Given the investment horizon of 90 days Evoke Pharma is expected to generate 1.32 times more return on investment than Valneva SE. However, Evoke Pharma is 1.32 times more volatile than Valneva SE ADR. It trades about 0.09 of its potential returns per unit of risk. Valneva SE ADR is currently generating about 0.11 per unit of risk. If you would invest 427.00 in Evoke Pharma on October 9, 2024 and sell it today you would earn a total of 33.00 from holding Evoke Pharma or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evoke Pharma vs. Valneva SE ADR
Performance |
| Timeline |
| Evoke Pharma |
| Valneva SE ADR |
Evoke Pharma and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evoke Pharma and Valneva SE
The main advantage of trading using opposite Evoke Pharma and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evoke Pharma 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.| Evoke Pharma vs. Petros Pharmaceuticals | Evoke Pharma vs. Cumberland Pharmaceuticals | Evoke Pharma vs. Painreform | Evoke Pharma vs. Aquestive Therapeutics |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |