Correlation Between CITIGROUP and Valneva SE
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By analyzing existing cross correlation between CITIGROUP FDG INC and Valneva SE ADR, you can compare the effects of market volatilities on CITIGROUP 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 CITIGROUP with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP and Valneva SE.
Diversification Opportunities for CITIGROUP and Valneva SE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CITIGROUP and Valneva is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP FDG INC 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 CITIGROUP 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 CITIGROUP FDG INC 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 CITIGROUP i.e., CITIGROUP and Valneva SE go up and down completely randomly.
Pair Corralation between CITIGROUP and Valneva SE
Assuming the 90 days trading horizon CITIGROUP is expected to generate 3.54 times less return on investment than Valneva SE. But when comparing it to its historical volatility, CITIGROUP FDG INC is 7.53 times less risky than Valneva SE. It trades about 0.74 of its potential returns per unit of risk. Valneva SE ADR is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 485.00 in Valneva SE ADR on November 27, 2024 and sell it today you would earn a total of 296.00 from holding Valneva SE ADR or generate 61.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 25.0% |
| Values | Daily Returns |
CITIGROUP FDG INC vs. Valneva SE ADR
Performance |
| Timeline |
| CITIGROUP FDG INC |
| Valneva SE ADR |
CITIGROUP and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIGROUP and Valneva SE
The main advantage of trading using opposite CITIGROUP and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIGROUP 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.| CITIGROUP vs. Strategic Education | CITIGROUP vs. Zane Interactive Publishing | CITIGROUP vs. Orbit Garant Drilling | CITIGROUP vs. WEBTOON Entertainment Common |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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