Correlation Between Mako Mining and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Mako Mining 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 Mako Mining and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Valneva SE ADR, you can compare the effects of market volatilities on Mako Mining 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 Mako Mining with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Valneva SE.
Diversification Opportunities for Mako Mining and Valneva SE
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mako and Valneva is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp 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 Mako Mining 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 Mako Mining Corp 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 Mako Mining i.e., Mako Mining and Valneva SE go up and down completely randomly.
Pair Corralation between Mako Mining and Valneva SE
Assuming the 90 days horizon Mako Mining is expected to generate 3.33 times less return on investment than Valneva SE. But when comparing it to its historical volatility, Mako Mining Corp is 1.52 times less risky than Valneva SE. It trades about 0.15 of its potential returns per unit of risk. Valneva SE ADR is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 469.00 in Valneva SE ADR on November 7, 2024 and sell it today you would earn a total of 198.00 from holding Valneva SE ADR or generate 42.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Mako Mining Corp vs. Valneva SE ADR
Performance |
| Timeline |
| Mako Mining Corp |
| Valneva SE ADR |
Mako Mining and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Valneva SE
The main advantage of trading using opposite Mako Mining and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining 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.| Mako Mining vs. Labrador Gold Corp | Mako Mining vs. Exploits Discovery Corp | Mako Mining vs. Puma Exploration | Mako Mining vs. White Gold Corp |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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