Correlation Between Summit Midstream and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Summit Midstream 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 Summit Midstream and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Midstream and Valneva SE ADR, you can compare the effects of market volatilities on Summit Midstream 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 Summit Midstream with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Midstream and Valneva SE.
Diversification Opportunities for Summit Midstream and Valneva SE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Summit and Valneva is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Summit Midstream 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 Summit Midstream 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 Summit Midstream 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 Summit Midstream i.e., Summit Midstream and Valneva SE go up and down completely randomly.
Pair Corralation between Summit Midstream and Valneva SE
Considering the 90-day investment horizon Summit Midstream is expected to generate 0.65 times more return on investment than Valneva SE. However, Summit Midstream is 1.55 times less risky than Valneva SE. It trades about 0.48 of its potential returns per unit of risk. Valneva SE ADR is currently generating about 0.02 per unit of risk. If you would invest 3,454 in Summit Midstream on October 20, 2024 and sell it today you would earn a total of 703.00 from holding Summit Midstream or generate 20.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Midstream vs. Valneva SE ADR
Performance |
| Timeline |
| Summit Midstream |
| Valneva SE ADR |
Summit Midstream and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Midstream and Valneva SE
The main advantage of trading using opposite Summit Midstream and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Midstream 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.| Summit Midstream vs. East West Bancorp | Summit Midstream vs. Exchange Bankshares | Summit Midstream vs. Encore Capital Group | Summit Midstream vs. Marimaca Copper Corp |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |