Correlation Between Nanobiotix and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Nanobiotix 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 Nanobiotix and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanobiotix SA and Valneva SE ADR, you can compare the effects of market volatilities on Nanobiotix 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 Nanobiotix with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanobiotix and Valneva SE.
Diversification Opportunities for Nanobiotix and Valneva SE
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanobiotix and Valneva is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Nanobiotix SA 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 Nanobiotix 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 Nanobiotix SA 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 Nanobiotix i.e., Nanobiotix and Valneva SE go up and down completely randomly.
Pair Corralation between Nanobiotix and Valneva SE
Assuming the 90 days trading horizon Nanobiotix SA is expected to generate 1.01 times more return on investment than Valneva SE. However, Nanobiotix is 1.01 times more volatile than Valneva SE ADR. It trades about -0.25 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.37 per unit of risk. If you would invest 521.00 in Nanobiotix SA on August 28, 2024 and sell it today you would lose (188.00) from holding Nanobiotix SA or give up 36.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Nanobiotix SA vs. Valneva SE ADR
Performance |
| Timeline |
| Nanobiotix SA |
| Valneva SE ADR |
Nanobiotix and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanobiotix and Valneva SE
The main advantage of trading using opposite Nanobiotix and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanobiotix 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.| Nanobiotix vs. Vetoquinol | Nanobiotix vs. Trigano SA | Nanobiotix vs. Biomerieux SA | Nanobiotix vs. Sartorius Stedim Biotech |
| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals | Valneva SE vs. Seres 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets |