Correlation Between Valneva SE and Accuray Incorporated
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Accuray Incorporated 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 Accuray Incorporated 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 Accuray Incorporated, you can compare the effects of market volatilities on Valneva SE and Accuray Incorporated 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 Accuray Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Accuray Incorporated.
Diversification Opportunities for Valneva SE and Accuray Incorporated
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Accuray is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Accuray Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accuray Incorporated 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 Accuray Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accuray Incorporated has no effect on the direction of Valneva SE i.e., Valneva SE and Accuray Incorporated go up and down completely randomly.
Pair Corralation between Valneva SE and Accuray Incorporated
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Accuray Incorporated. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.62 times less risky than Accuray Incorporated. The stock trades about -0.58 of its potential returns per unit of risk. The Accuray Incorporated is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Accuray Incorporated on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Accuray Incorporated or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Accuray Incorporated
Performance |
| Timeline |
| Valneva SE ADR |
| Accuray Incorporated |
Valneva SE and Accuray Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Accuray Incorporated
The main advantage of trading using opposite Valneva SE and Accuray Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Accuray Incorporated 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 Accuray Incorporated will offset losses from the drop in Accuray Incorporated's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
| Accuray Incorporated vs. SurModics | Accuray Incorporated vs. Axogen Inc | Accuray Incorporated vs. Bioventus | Accuray Incorporated vs. Cutera Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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