Correlation Between Mosaic and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Mosaic 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 Mosaic and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Mosaic and Valneva SE ADR, you can compare the effects of market volatilities on Mosaic 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 Mosaic with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mosaic and Valneva SE.
Diversification Opportunities for Mosaic and Valneva SE
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mosaic and Valneva is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Mosaic 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 Mosaic 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 The Mosaic 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 Mosaic i.e., Mosaic and Valneva SE go up and down completely randomly.
Pair Corralation between Mosaic and Valneva SE
Considering the 90-day investment horizon The Mosaic is expected to generate 0.7 times more return on investment than Valneva SE. However, The Mosaic is 1.44 times less risky than Valneva SE. It trades about -0.05 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.2 per unit of risk. If you would invest 3,014 in The Mosaic on August 30, 2024 and sell it today you would lose (441.00) from holding The Mosaic or give up 14.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Mosaic vs. Valneva SE ADR
Performance |
| Timeline |
| Mosaic |
| Valneva SE ADR |
Mosaic and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mosaic and Valneva SE
The main advantage of trading using opposite Mosaic and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mosaic 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.The idea behind The Mosaic and Valneva SE ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Valneva SE vs. Ikena Oncology | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Tempest 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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