Correlation Between DEUTSCHE and Valneva SE
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By analyzing existing cross correlation between DEUTSCHE BANK AG and Valneva SE ADR, you can compare the effects of market volatilities on DEUTSCHE 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 DEUTSCHE with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DEUTSCHE and Valneva SE.
Diversification Opportunities for DEUTSCHE and Valneva SE
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DEUTSCHE and Valneva is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding DEUTSCHE BANK AG 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 DEUTSCHE 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 DEUTSCHE BANK AG 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 DEUTSCHE i.e., DEUTSCHE and Valneva SE go up and down completely randomly.
Pair Corralation between DEUTSCHE and Valneva SE
Assuming the 90 days trading horizon DEUTSCHE BANK AG is expected to under-perform the Valneva SE. But the bond apears to be less risky and, when comparing its historical volatility, DEUTSCHE BANK AG is 8.86 times less risky than Valneva SE. The bond trades about -0.1 of its potential returns per unit of risk. The Valneva SE ADR is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 559.00 in Valneva SE ADR on November 6, 2024 and sell it today you would lose (22.00) from holding Valneva SE ADR or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 79.66% |
| Values | Daily Returns |
DEUTSCHE BANK AG vs. Valneva SE ADR
Performance |
| Timeline |
| DEUTSCHE BANK AG |
| Valneva SE ADR |
DEUTSCHE and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DEUTSCHE and Valneva SE
The main advantage of trading using opposite DEUTSCHE and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DEUTSCHE 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.The idea behind DEUTSCHE BANK AG and Valneva SE ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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