Correlation Between Valneva SE and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Valneva SE and ANTA Sports 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 ANTA Sports 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 ANTA Sports Products, you can compare the effects of market volatilities on Valneva SE and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and ANTA Sports.
Diversification Opportunities for Valneva SE and ANTA Sports
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valneva and ANTA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Valneva SE i.e., Valneva SE and ANTA Sports go up and down completely randomly.
Pair Corralation between Valneva SE and ANTA Sports
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the ANTA Sports. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.59 times less risky than ANTA Sports. The stock trades about -0.36 of its potential returns per unit of risk. The ANTA Sports Products is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 23,973 in ANTA Sports Products on August 31, 2024 and sell it today you would earn a total of 1,237 from holding ANTA Sports Products or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. ANTA Sports Products
Performance |
| Timeline |
| Valneva SE ADR |
| ANTA Sports Products |
Valneva SE and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and ANTA Sports
The main advantage of trading using opposite Valneva SE and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| ANTA Sports vs. TWC Enterprises Limited | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Brownies Marine Group | ANTA Sports vs. Golden Heaven Group |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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