Correlation Between Small Cap and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Small Cap 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 Small Cap and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Premium and Valneva SE ADR, you can compare the effects of market volatilities on Small Cap 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 Small Cap with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Cap and Valneva SE.
Diversification Opportunities for Small Cap and Valneva SE
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Small and Valneva is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Premium 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 Small Cap 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 Small Cap Premium 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 Small Cap i.e., Small Cap and Valneva SE go up and down completely randomly.
Pair Corralation between Small Cap and Valneva SE
Considering the 90-day investment horizon Small Cap Premium is expected to generate 0.14 times more return on investment than Valneva SE. However, Small Cap Premium is 6.99 times less risky than Valneva SE. It trades about 0.08 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.11 per unit of risk. If you would invest 2,255 in Small Cap Premium on September 4, 2024 and sell it today you would earn a total of 205.00 from holding Small Cap Premium or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Small Cap Premium vs. Valneva SE ADR
Performance |
| Timeline |
| Small Cap Premium |
| Valneva SE ADR |
Small Cap and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small Cap and Valneva SE
The main advantage of trading using opposite Small Cap and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Cap 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.| Small Cap vs. RiverNorth Specialty Finance | Small Cap vs. Royce Micro Cap | Small Cap vs. First Trust Enhanced | Small Cap vs. Voya Global Advantage |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |