Correlation Between Valneva SE and AERWINS Technologies
Can any of the company-specific risk be diversified away by investing in both Valneva SE and AERWINS Technologies 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 AERWINS Technologies 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 AERWINS Technologies, you can compare the effects of market volatilities on Valneva SE and AERWINS Technologies 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 AERWINS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and AERWINS Technologies.
Diversification Opportunities for Valneva SE and AERWINS Technologies
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valneva and AERWINS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies 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 AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Valneva SE i.e., Valneva SE and AERWINS Technologies go up and down completely randomly.
Pair Corralation between Valneva SE and AERWINS Technologies
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the AERWINS Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 7.08 times less risky than AERWINS Technologies. The stock trades about -0.05 of its potential returns per unit of risk. The AERWINS Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 15.00 in AERWINS Technologies on September 3, 2024 and sell it today you would lose (14.42) from holding AERWINS Technologies or give up 96.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.28% |
| Values | Daily Returns |
Valneva SE ADR vs. AERWINS Technologies
Performance |
| Timeline |
| Valneva SE ADR |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valneva SE and AERWINS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and AERWINS Technologies
The main advantage of trading using opposite Valneva SE and AERWINS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, AERWINS Technologies 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 AERWINS Technologies will offset losses from the drop in AERWINS Technologies' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| AERWINS Technologies vs. Cardinal Health | AERWINS Technologies vs. Valneva SE ADR | AERWINS Technologies vs. Analog Devices | AERWINS Technologies vs. Sea |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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