Correlation Between Transgene and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Transgene 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 Transgene and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transgene SA and Valneva SE, you can compare the effects of market volatilities on Transgene 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 Transgene with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transgene and Valneva SE.
Diversification Opportunities for Transgene and Valneva SE
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Transgene and Valneva is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Transgene SA and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE and Transgene 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 Transgene SA 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 has no effect on the direction of Transgene i.e., Transgene and Valneva SE go up and down completely randomly.
Pair Corralation between Transgene and Valneva SE
Assuming the 90 days trading horizon Transgene is expected to generate 5.84 times less return on investment than Valneva SE. But when comparing it to its historical volatility, Transgene SA is 1.13 times less risky than Valneva SE. It trades about 0.04 of its potential returns per unit of risk. Valneva SE is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 229.00 in Valneva SE on November 7, 2024 and sell it today you would earn a total of 35.00 from holding Valneva SE or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Transgene SA vs. Valneva SE
Performance |
| Timeline |
| Transgene SA |
| Valneva SE |
Transgene and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transgene and Valneva SE
The main advantage of trading using opposite Transgene and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transgene 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.| Transgene vs. Innate Pharma | Transgene vs. Nanobiotix SA | Transgene vs. Genfit | Transgene vs. AB Science SA |
| Valneva SE vs. Innate Pharma | Valneva SE vs. DBV Technologies SA | Valneva SE vs. Genfit | Valneva SE vs. Valneva SE ADR |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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