Correlation Between Lifestore Financial and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Lifestore Financial 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 Lifestore Financial and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifestore Financial Group and Valneva SE ADR, you can compare the effects of market volatilities on Lifestore Financial 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 Lifestore Financial with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifestore Financial and Valneva SE.
Diversification Opportunities for Lifestore Financial and Valneva SE
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lifestore and Valneva is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lifestore Financial 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 Lifestore Financial 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 Lifestore Financial 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 Lifestore Financial i.e., Lifestore Financial and Valneva SE go up and down completely randomly.
Pair Corralation between Lifestore Financial and Valneva SE
Given the investment horizon of 90 days Lifestore Financial Group is expected to generate 0.81 times more return on investment than Valneva SE. However, Lifestore Financial Group is 1.23 times less risky than Valneva SE. It trades about 0.01 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 4,250 in Lifestore Financial Group on September 5, 2024 and sell it today you would lose (350.00) from holding Lifestore Financial Group or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.87% |
| Values | Daily Returns |
Lifestore Financial Group vs. Valneva SE ADR
Performance |
| Timeline |
| Lifestore Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Valneva SE ADR |
Lifestore Financial and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifestore Financial and Valneva SE
The main advantage of trading using opposite Lifestore Financial and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifestore Financial 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.| Lifestore Financial vs. NETGEAR | Lifestore Financial vs. Marfrig Global Foods | Lifestore Financial vs. Bridgford Foods | Lifestore Financial vs. Uber Technologies |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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