Correlation Between Valneva SE and AMREP
Can any of the company-specific risk be diversified away by investing in both Valneva SE and AMREP 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 AMREP 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 AMREP, you can compare the effects of market volatilities on Valneva SE and AMREP 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 AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and AMREP.
Diversification Opportunities for Valneva SE and AMREP
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and AMREP is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP 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 AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Valneva SE i.e., Valneva SE and AMREP go up and down completely randomly.
Pair Corralation between Valneva SE and AMREP
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the AMREP. In addition to that, Valneva SE is 1.06 times more volatile than AMREP. It trades about -0.08 of its total potential returns per unit of risk. AMREP is currently generating about 0.09 per unit of volatility. If you would invest 1,552 in AMREP on September 2, 2024 and sell it today you would earn a total of 2,052 from holding AMREP or generate 132.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. AMREP
Performance |
| Timeline |
| Valneva SE ADR |
| AMREP |
Valneva SE and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and AMREP
The main advantage of trading using opposite Valneva SE and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.| Valneva SE vs. Tff Pharmaceuticals | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Inhibrx | Valneva SE vs. Enliven Therapeutics |
| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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