Correlation Between Valneva SE and Aptose Biosciences
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Aptose Biosciences 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 Aptose Biosciences 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 Aptose Biosciences, you can compare the effects of market volatilities on Valneva SE and Aptose Biosciences 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 Aptose Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Aptose Biosciences.
Diversification Opportunities for Valneva SE and Aptose Biosciences
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Aptose is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Aptose Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptose Biosciences 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 Aptose Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptose Biosciences has no effect on the direction of Valneva SE i.e., Valneva SE and Aptose Biosciences go up and down completely randomly.
Pair Corralation between Valneva SE and Aptose Biosciences
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.72 times more return on investment than Aptose Biosciences. However, Valneva SE ADR is 1.38 times less risky than Aptose Biosciences. It trades about -0.05 of its potential returns per unit of risk. Aptose Biosciences is currently generating about -0.13 per unit of risk. If you would invest 1,439 in Valneva SE ADR on September 3, 2024 and sell it today you would lose (1,034) from holding Valneva SE ADR or give up 71.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Aptose Biosciences
Performance |
| Timeline |
| Valneva SE ADR |
| Aptose Biosciences |
Valneva SE and Aptose Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Aptose Biosciences
The main advantage of trading using opposite Valneva SE and Aptose Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Aptose Biosciences 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 Aptose Biosciences will offset losses from the drop in Aptose Biosciences' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Aptose Biosciences vs. CytomX Therapeutics | Aptose Biosciences vs. Instil Bio | Aptose Biosciences vs. Spero Therapeutics | Aptose Biosciences vs. Assembly Biosciences |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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