Correlation Between Sellas Life and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Sellas Life 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 Sellas Life and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Valneva SE ADR, you can compare the effects of market volatilities on Sellas Life 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 Sellas Life with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Valneva SE.
Diversification Opportunities for Sellas Life and Valneva SE
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sellas and Valneva is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences 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 Sellas Life 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 Sellas Life Sciences 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 Sellas Life i.e., Sellas Life and Valneva SE go up and down completely randomly.
Pair Corralation between Sellas Life and Valneva SE
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 1.59 times more return on investment than Valneva SE. However, Sellas Life is 1.59 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 -0.04 per unit of risk. If you would invest 325.00 in Sellas Life Sciences on October 20, 2024 and sell it today you would lose (219.00) from holding Sellas Life Sciences or give up 67.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. Valneva SE ADR
Performance |
| Timeline |
| Sellas Life Sciences |
| Valneva SE ADR |
Sellas Life and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Valneva SE
The main advantage of trading using opposite Sellas Life and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life 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.| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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