Correlation Between Telia Company and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Telia Company 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 Telia Company and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telia Company AB and Valneva SE ADR, you can compare the effects of market volatilities on Telia Company 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 Telia Company with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telia Company and Valneva SE.
Diversification Opportunities for Telia Company and Valneva SE
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telia and Valneva is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Telia Company AB 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 Telia Company 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 Telia Company AB 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 Telia Company i.e., Telia Company and Valneva SE go up and down completely randomly.
Pair Corralation between Telia Company and Valneva SE
If you would invest 310.00 in Telia Company AB on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Telia Company AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Telia Company AB vs. Valneva SE ADR
Performance |
| Timeline |
| Telia Company |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Valneva SE ADR |
Telia Company and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telia Company and Valneva SE
The main advantage of trading using opposite Telia Company and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telia Company 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.| Telia Company vs. Valneva SE ADR | Telia Company vs. Analog Devices | Telia Company vs. Uber Technologies | Telia Company vs. Lipocine |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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