Correlation Between Valneva SE and Akari Therapeutics
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Akari Therapeutics 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 Akari Therapeutics 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 Akari Therapeutics PLC, you can compare the effects of market volatilities on Valneva SE and Akari Therapeutics 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 Akari Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Akari Therapeutics.
Diversification Opportunities for Valneva SE and Akari Therapeutics
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Valneva and Akari is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Akari Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akari Therapeutics PLC 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 Akari Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akari Therapeutics PLC has no effect on the direction of Valneva SE i.e., Valneva SE and Akari Therapeutics go up and down completely randomly.
Pair Corralation between Valneva SE and Akari Therapeutics
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.41 times more return on investment than Akari Therapeutics. However, Valneva SE ADR is 2.41 times less risky than Akari Therapeutics. It trades about -0.14 of its potential returns per unit of risk. Akari Therapeutics PLC is currently generating about -0.08 per unit of risk. If you would invest 709.00 in Valneva SE ADR on September 13, 2024 and sell it today you would lose (313.00) from holding Valneva SE ADR or give up 44.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Akari Therapeutics PLC
Performance |
| Timeline |
| Valneva SE ADR |
| Akari Therapeutics PLC |
Valneva SE and Akari Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Akari Therapeutics
The main advantage of trading using opposite Valneva SE and Akari Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Akari Therapeutics 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 Akari Therapeutics will offset losses from the drop in Akari Therapeutics' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Akari Therapeutics vs. Emergent Biosolutions | Akari Therapeutics vs. Bausch Health Companies | Akari Therapeutics vs. Neurocrine Biosciences | Akari Therapeutics vs. Teva Pharma Industries |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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