Correlation Between MICROSOFT and Valneva SE
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By analyzing existing cross correlation between MICROSOFT PORATION and Valneva SE ADR, you can compare the effects of market volatilities on MICROSOFT 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 MICROSOFT with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MICROSOFT and Valneva SE.
Diversification Opportunities for MICROSOFT and Valneva SE
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MICROSOFT and Valneva is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding MICROSOFT 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 MICROSOFT 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 MICROSOFT 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 MICROSOFT i.e., MICROSOFT and Valneva SE go up and down completely randomly.
Pair Corralation between MICROSOFT and Valneva SE
Assuming the 90 days trading horizon MICROSOFT PORATION is expected to generate 0.44 times more return on investment than Valneva SE. However, MICROSOFT PORATION is 2.26 times less risky than Valneva SE. It trades about 0.01 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.02 per unit of risk. If you would invest 6,986 in MICROSOFT PORATION on November 3, 2024 and sell it today you would earn a total of 5.00 from holding MICROSOFT PORATION or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MICROSOFT PORATION vs. Valneva SE ADR
Performance |
| Timeline |
| MICROSOFT PORATION |
| Valneva SE ADR |
MICROSOFT and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MICROSOFT and Valneva SE
The main advantage of trading using opposite MICROSOFT and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MICROSOFT 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.| MICROSOFT vs. Grounded People Apparel | MICROSOFT vs. Ralph Lauren Corp | MICROSOFT vs. Playtika Holding Corp | MICROSOFT vs. NanoTech Gaming |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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