Correlation Between Valneva SE and Bionano Genomics
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Bionano Genomics 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 Bionano Genomics 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 Bionano Genomics, you can compare the effects of market volatilities on Valneva SE and Bionano Genomics 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 Bionano Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Bionano Genomics.
Diversification Opportunities for Valneva SE and Bionano Genomics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Bionano is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics 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 Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of Valneva SE i.e., Valneva SE and Bionano Genomics go up and down completely randomly.
Pair Corralation between Valneva SE and Bionano Genomics
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.2 times more return on investment than Bionano Genomics. However, Valneva SE ADR is 5.12 times less risky than Bionano Genomics. It trades about 0.19 of its potential returns per unit of risk. Bionano Genomics is currently generating about 0.03 per unit of risk. If you would invest 404.00 in Valneva SE ADR on October 22, 2024 and sell it today you would earn a total of 33.00 from holding Valneva SE ADR or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Bionano Genomics
Performance |
| Timeline |
| Valneva SE ADR |
| Bionano Genomics |
Valneva SE and Bionano Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Bionano Genomics
The main advantage of trading using opposite Valneva SE and Bionano Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Bionano Genomics 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 Bionano Genomics will offset losses from the drop in Bionano Genomics' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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