Correlation Between Valneva SE and Above Food
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Above Food 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 Valneva SE and Above Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valneva SE ADR and Above Food Ingredients, you can compare the effects of market volatilities on Valneva SE and Above Food 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 Valneva SE with a short position of Above Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Above Food.
Diversification Opportunities for Valneva SE and Above Food
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Valneva and Above is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Above Food Ingredients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Above Food Ingredients and Valneva SE 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 Valneva SE ADR are associated (or correlated) with Above Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Above Food Ingredients has no effect on the direction of Valneva SE i.e., Valneva SE and Above Food go up and down completely randomly.
Pair Corralation between Valneva SE and Above Food
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Above Food. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 4.37 times less risky than Above Food. The stock trades about -0.59 of its potential returns per unit of risk. The Above Food Ingredients is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Above Food Ingredients on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Above Food Ingredients or generate 76.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Above Food Ingredients
Performance |
| Timeline |
| Valneva SE ADR |
| Above Food Ingredients |
Valneva SE and Above Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Above Food
The main advantage of trading using opposite Valneva SE and Above Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Above Food 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 Above Food will offset losses from the drop in Above Food's long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Above Food vs. Visteon Corp | Above Food vs. Valneva SE ADR | Above Food vs. Brunswick | Above Food vs. NETGEAR |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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