Correlation Between Valneva SE and Bluejay Diagnostics
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Bluejay Diagnostics 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 Bluejay Diagnostics 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 Bluejay Diagnostics, you can compare the effects of market volatilities on Valneva SE and Bluejay Diagnostics 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 Bluejay Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Bluejay Diagnostics.
Diversification Opportunities for Valneva SE and Bluejay Diagnostics
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Bluejay is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Bluejay Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluejay Diagnostics 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 Bluejay Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluejay Diagnostics has no effect on the direction of Valneva SE i.e., Valneva SE and Bluejay Diagnostics go up and down completely randomly.
Pair Corralation between Valneva SE and Bluejay Diagnostics
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.36 times more return on investment than Bluejay Diagnostics. However, Valneva SE ADR is 2.77 times less risky than Bluejay Diagnostics. It trades about -0.05 of its potential returns per unit of risk. Bluejay Diagnostics is currently generating about -0.09 per unit of risk. If you would invest 1,487 in Valneva SE ADR on August 24, 2024 and sell it today you would lose (1,044) from holding Valneva SE ADR or give up 70.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Bluejay Diagnostics
Performance |
| Timeline |
| Valneva SE ADR |
| Bluejay Diagnostics |
Valneva SE and Bluejay Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Bluejay Diagnostics
The main advantage of trading using opposite Valneva SE and Bluejay Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Bluejay Diagnostics 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 Bluejay Diagnostics will offset losses from the drop in Bluejay Diagnostics' long position.| Valneva SE vs. Lyra Therapeutics | Valneva SE vs. Hookipa Pharma | Valneva SE vs. Cingulate Warrants | Valneva SE vs. SAB Biotherapeutics |
| Bluejay Diagnostics vs. Bone Biologics Corp | Bluejay Diagnostics vs. Nuwellis | Bluejay Diagnostics vs. Heart Test Laboratories | Bluejay Diagnostics vs. Tivic Health Systems |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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