Correlation Between Iovance Biotherapeutics and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Iovance Biotherapeutics 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 Iovance Biotherapeutics and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iovance Biotherapeutics and Valneva SE ADR, you can compare the effects of market volatilities on Iovance Biotherapeutics 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 Iovance Biotherapeutics with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iovance Biotherapeutics and Valneva SE.
Diversification Opportunities for Iovance Biotherapeutics and Valneva SE
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iovance and Valneva is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Iovance Biotherapeutics 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 Iovance Biotherapeutics 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 Iovance Biotherapeutics 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 Iovance Biotherapeutics i.e., Iovance Biotherapeutics and Valneva SE go up and down completely randomly.
Pair Corralation between Iovance Biotherapeutics and Valneva SE
Given the investment horizon of 90 days Iovance Biotherapeutics is expected to generate 1.1 times more return on investment than Valneva SE. However, Iovance Biotherapeutics is 1.1 times more volatile than Valneva SE ADR. It trades about -0.1 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.3 per unit of risk. If you would invest 859.00 in Iovance Biotherapeutics on September 15, 2024 and sell it today you would lose (76.00) from holding Iovance Biotherapeutics or give up 8.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iovance Biotherapeutics vs. Valneva SE ADR
Performance |
| Timeline |
| Iovance Biotherapeutics |
| Valneva SE ADR |
Iovance Biotherapeutics and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iovance Biotherapeutics and Valneva SE
The main advantage of trading using opposite Iovance Biotherapeutics and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iovance Biotherapeutics 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.| Iovance Biotherapeutics vs. PTC Therapeutics | Iovance Biotherapeutics vs. Krystal Biotech | Iovance Biotherapeutics vs. Sarepta Therapeutics | Iovance Biotherapeutics vs. Madrigal Pharmaceuticals |
| Valneva SE vs. Puma Biotechnology | Valneva SE vs. Iovance Biotherapeutics | Valneva SE vs. Day One Biopharmaceuticals | Valneva SE vs. Inozyme Pharma |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |