Correlation Between GENERAL and Valneva SE
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By analyzing existing cross correlation between GENERAL DYNAMICS PORATION and Valneva SE ADR, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Valneva SE.
Diversification Opportunities for GENERAL and Valneva SE
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GENERAL and Valneva is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL DYNAMICS PORATION 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 GENERAL 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 GENERAL DYNAMICS PORATION 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 GENERAL i.e., GENERAL and Valneva SE go up and down completely randomly.
Pair Corralation between GENERAL and Valneva SE
Assuming the 90 days trading horizon GENERAL DYNAMICS PORATION is expected to generate 0.14 times more return on investment than Valneva SE. However, GENERAL DYNAMICS PORATION is 7.3 times less risky than Valneva SE. It trades about -0.02 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.08 per unit of risk. If you would invest 9,555 in GENERAL DYNAMICS PORATION on August 29, 2024 and sell it today you would lose (231.00) from holding GENERAL DYNAMICS PORATION or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.52% |
| Values | Daily Returns |
GENERAL DYNAMICS PORATION vs. Valneva SE ADR
Performance |
| Timeline |
| GENERAL DYNAMICS PORATION |
| Valneva SE ADR |
GENERAL and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Valneva SE
The main advantage of trading using opposite GENERAL and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Valneva SE ADR | GENERAL vs. Brandywine Realty Trust | GENERAL vs. Oatly Group AB | GENERAL vs. China Tontine Wines |
| Valneva SE vs. Bright Minds Biosciences | Valneva SE vs. HP Inc | Valneva SE vs. Intel | Valneva SE vs. Chevron Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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