Correlation Between Financiere Marjos and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Financiere Marjos 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 Financiere Marjos and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financiere Marjos SA and Valneva SE, you can compare the effects of market volatilities on Financiere Marjos 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 Financiere Marjos with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financiere Marjos and Valneva SE.
Diversification Opportunities for Financiere Marjos and Valneva SE
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Financiere and Valneva is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Financiere Marjos SA and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE and Financiere Marjos 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 Financiere Marjos SA 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 has no effect on the direction of Financiere Marjos i.e., Financiere Marjos and Valneva SE go up and down completely randomly.
Pair Corralation between Financiere Marjos and Valneva SE
Assuming the 90 days trading horizon Financiere Marjos SA is expected to generate 2.27 times more return on investment than Valneva SE. However, Financiere Marjos is 2.27 times more volatile than Valneva SE. It trades about 0.02 of its potential returns per unit of risk. Valneva SE is currently generating about -0.05 per unit of risk. If you would invest 15.00 in Financiere Marjos SA on October 30, 2024 and sell it today you would lose (7.20) from holding Financiere Marjos SA or give up 48.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.22% |
| Values | Daily Returns |
Financiere Marjos SA vs. Valneva SE
Performance |
| Timeline |
| Financiere Marjos |
| Valneva SE |
Financiere Marjos and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financiere Marjos and Valneva SE
The main advantage of trading using opposite Financiere Marjos and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financiere Marjos 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.| Financiere Marjos vs. Nexity | Financiere Marjos vs. Icade SA | Financiere Marjos vs. Amundi SA | Financiere Marjos vs. Rubis SCA |
| Valneva SE vs. Innate Pharma | Valneva SE vs. Nanobiotix SA | Valneva SE vs. Genfit | Valneva SE vs. AB Science SA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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