Correlation Between Kinsale Capital and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Kinsale Capital 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 Kinsale Capital and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinsale Capital Group and Valneva SE ADR, you can compare the effects of market volatilities on Kinsale Capital 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 Kinsale Capital with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinsale Capital and Valneva SE.
Diversification Opportunities for Kinsale Capital and Valneva SE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinsale and Valneva is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kinsale Capital Group 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 Kinsale Capital 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 Kinsale Capital Group 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 Kinsale Capital i.e., Kinsale Capital and Valneva SE go up and down completely randomly.
Pair Corralation between Kinsale Capital and Valneva SE
Given the investment horizon of 90 days Kinsale Capital Group is expected to generate 0.49 times more return on investment than Valneva SE. However, Kinsale Capital Group is 2.02 times less risky than Valneva SE. It trades about 0.19 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 47,606 in Kinsale Capital Group on September 12, 2024 and sell it today you would earn a total of 3,581 from holding Kinsale Capital Group or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinsale Capital Group vs. Valneva SE ADR
Performance |
| Timeline |
| Kinsale Capital Group |
| Valneva SE ADR |
Kinsale Capital and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinsale Capital and Valneva SE
The main advantage of trading using opposite Kinsale Capital and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinsale Capital 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.| Kinsale Capital vs. Aeye Inc | Kinsale Capital vs. Ep Emerging Markets | Kinsale Capital vs. LiCycle Holdings Corp | Kinsale Capital vs. SEI Investments |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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