Correlation Between Integral and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Integral 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 Integral and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Valneva SE ADR, you can compare the effects of market volatilities on Integral 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 Integral with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Valneva SE.
Diversification Opportunities for Integral and Valneva SE
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Integral and Valneva is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science 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 Integral 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 Integral Ad Science 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 Integral i.e., Integral and Valneva SE go up and down completely randomly.
Pair Corralation between Integral and Valneva SE
Considering the 90-day investment horizon Integral Ad Science is expected to generate 0.96 times more return on investment than Valneva SE. However, Integral Ad Science is 1.04 times less risky than Valneva SE. It trades about 0.03 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.05 per unit of risk. If you would invest 963.00 in Integral Ad Science on August 25, 2024 and sell it today you would earn a total of 145.00 from holding Integral Ad Science or generate 15.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Integral Ad Science vs. Valneva SE ADR
Performance |
| Timeline |
| Integral Ad Science |
| Valneva SE ADR |
Integral and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Valneva SE
The main advantage of trading using opposite Integral and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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 Integral Ad Science 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. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. RenovoRx | Valneva SE vs. Tempest Therapeutics |
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.
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