Correlation Between Valneva SE and CannBioRx Life
Can any of the company-specific risk be diversified away by investing in both Valneva SE and CannBioRx Life 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 CannBioRx Life 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 CannBioRx Life Sciences, you can compare the effects of market volatilities on Valneva SE and CannBioRx Life 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 CannBioRx Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and CannBioRx Life.
Diversification Opportunities for Valneva SE and CannBioRx Life
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Valneva and CannBioRx is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and CannBioRx Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannBioRx Life Sciences 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 CannBioRx Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannBioRx Life Sciences has no effect on the direction of Valneva SE i.e., Valneva SE and CannBioRx Life go up and down completely randomly.
Pair Corralation between Valneva SE and CannBioRx Life
Given the investment horizon of 90 days Valneva SE is expected to generate 1.0 times less return on investment than CannBioRx Life. But when comparing it to its historical volatility, Valneva SE ADR is 3.23 times less risky than CannBioRx Life. It trades about 0.35 of its potential returns per unit of risk. CannBioRx Life Sciences is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.90 in CannBioRx Life Sciences on November 27, 2024 and sell it today you would earn a total of 0.10 from holding CannBioRx Life Sciences or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. CannBioRx Life Sciences
Performance |
| Timeline |
| Valneva SE ADR |
| CannBioRx Life Sciences |
Valneva SE and CannBioRx Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and CannBioRx Life
The main advantage of trading using opposite Valneva SE and CannBioRx Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, CannBioRx Life 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 CannBioRx Life will offset losses from the drop in CannBioRx Life's long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |