Correlation Between Inflection Point and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Inflection Point 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 Inflection Point and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and Valneva SE ADR, you can compare the effects of market volatilities on Inflection Point 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 Inflection Point with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Valneva SE.
Diversification Opportunities for Inflection Point and Valneva SE
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inflection and Valneva is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition 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 Inflection Point 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 Inflection Point Acquisition 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 Inflection Point i.e., Inflection Point and Valneva SE go up and down completely randomly.
Pair Corralation between Inflection Point and Valneva SE
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 0.86 times more return on investment than Valneva SE. However, Inflection Point Acquisition is 1.16 times less risky than Valneva SE. It trades about 0.07 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.07 per unit of risk. If you would invest 1,066 in Inflection Point Acquisition on October 26, 2024 and sell it today you would earn a total of 229.00 from holding Inflection Point Acquisition or generate 21.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Valneva SE ADR
Performance |
| Timeline |
| Inflection Point Acq |
| Valneva SE ADR |
Inflection Point and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Valneva SE
The main advantage of trading using opposite Inflection Point and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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.| Inflection Point vs. Ferrari NV | Inflection Point vs. ChampionX | Inflection Point vs. Hurco Companies | Inflection Point vs. Primoris Services |
| 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.
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