Correlation Between Valneva SE and ATI Physical
Can any of the company-specific risk be diversified away by investing in both Valneva SE and ATI Physical 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 ATI Physical 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 ATI Physical Therapy, you can compare the effects of market volatilities on Valneva SE and ATI Physical 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 ATI Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and ATI Physical.
Diversification Opportunities for Valneva SE and ATI Physical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and ATI is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and ATI Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATI Physical Therapy 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 ATI Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATI Physical Therapy has no effect on the direction of Valneva SE i.e., Valneva SE and ATI Physical go up and down completely randomly.
Pair Corralation between Valneva SE and ATI Physical
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.69 times more return on investment than ATI Physical. However, Valneva SE ADR is 1.45 times less risky than ATI Physical. It trades about -0.05 of its potential returns per unit of risk. ATI Physical Therapy is currently generating about -0.06 per unit of risk. If you would invest 1,359 in Valneva SE ADR on August 28, 2024 and sell it today you would lose (929.00) from holding Valneva SE ADR or give up 68.36% 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. ATI Physical Therapy
Performance |
| Timeline |
| Valneva SE ADR |
| ATI Physical Therapy |
Valneva SE and ATI Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and ATI Physical
The main advantage of trading using opposite Valneva SE and ATI Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, ATI Physical 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 ATI Physical will offset losses from the drop in ATI Physical's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
| ATI Physical vs. Universal Health Services | ATI Physical vs. Lifestance Health Group | ATI Physical vs. Select Medical Holdings | ATI Physical vs. Acadia Healthcare |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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