Correlation Between Mesa Air and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Mesa Air 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 Mesa Air and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesa Air Group and Valneva SE ADR, you can compare the effects of market volatilities on Mesa Air 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 Mesa Air with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Valneva SE.
Diversification Opportunities for Mesa Air and Valneva SE
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mesa and Valneva is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air 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 Mesa Air 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 Mesa Air 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 Mesa Air i.e., Mesa Air and Valneva SE go up and down completely randomly.
Pair Corralation between Mesa Air and Valneva SE
Given the investment horizon of 90 days Mesa Air Group is expected to generate 1.87 times more return on investment than Valneva SE. However, Mesa Air is 1.87 times more volatile than Valneva SE ADR. It trades about -0.01 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.18 per unit of risk. If you would invest 143.00 in Mesa Air Group on September 2, 2024 and sell it today you would lose (35.00) from holding Mesa Air Group or give up 24.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. Valneva SE ADR
Performance |
| Timeline |
| Mesa Air Group |
| Valneva SE ADR |
Mesa Air and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Valneva SE
The main advantage of trading using opposite Mesa Air and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air 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.| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
| Valneva SE vs. Tff Pharmaceuticals | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Inhibrx | Valneva SE vs. Enliven Therapeutics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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