Correlation Between Ihuman and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Valneva SE ADR, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Valneva SE.
Diversification Opportunities for Ihuman and Valneva SE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ihuman and Valneva is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc 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 Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Valneva SE go up and down completely randomly.
Pair Corralation between Ihuman and Valneva SE
Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 1.07 times more return on investment than Valneva SE. However, Ihuman is 1.07 times more volatile than Valneva SE ADR. It trades about -0.02 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.08 per unit of risk. If you would invest 264.00 in Ihuman Inc on September 2, 2024 and sell it today you would lose (99.00) from holding Ihuman Inc or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Valneva SE ADR
Performance |
| Timeline |
| Ihuman Inc |
| Valneva SE ADR |
Ihuman and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Valneva SE
The main advantage of trading using opposite Ihuman and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Wah Fu Education | Ihuman vs. Golden Sun Education | Ihuman vs. Elite Education Group | Ihuman vs. QuantaSing Group Limited |
| Valneva SE vs. Tff Pharmaceuticals | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Inhibrx | Valneva SE vs. Enliven 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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