Correlation Between ScanSource and Valneva SE
Can any of the company-specific risk be diversified away by investing in both ScanSource 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 ScanSource and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanSource and Valneva SE ADR, you can compare the effects of market volatilities on ScanSource 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 ScanSource with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Valneva SE.
Diversification Opportunities for ScanSource and Valneva SE
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ScanSource and Valneva is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource 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 ScanSource 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 ScanSource 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 ScanSource i.e., ScanSource and Valneva SE go up and down completely randomly.
Pair Corralation between ScanSource and Valneva SE
Given the investment horizon of 90 days ScanSource is expected to generate 0.91 times more return on investment than Valneva SE. However, ScanSource is 1.1 times less risky than Valneva SE. It trades about 0.04 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.34 per unit of risk. If you would invest 4,862 in ScanSource on September 2, 2024 and sell it today you would earn a total of 179.00 from holding ScanSource or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanSource vs. Valneva SE ADR
Performance |
| Timeline |
| ScanSource |
| Valneva SE ADR |
ScanSource and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanSource and Valneva SE
The main advantage of trading using opposite ScanSource and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource 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.| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Synnex | ScanSource vs. PC Connection |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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