Correlation Between Valneva SE and Bowen Acquisition
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Bowen Acquisition 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 Bowen Acquisition 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 Bowen Acquisition Corp, you can compare the effects of market volatilities on Valneva SE and Bowen Acquisition 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 Bowen Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Bowen Acquisition.
Diversification Opportunities for Valneva SE and Bowen Acquisition
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Bowen is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Bowen Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowen Acquisition Corp 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 Bowen Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowen Acquisition Corp has no effect on the direction of Valneva SE i.e., Valneva SE and Bowen Acquisition go up and down completely randomly.
Pair Corralation between Valneva SE and Bowen Acquisition
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 19.86 times more return on investment than Bowen Acquisition. However, Valneva SE is 19.86 times more volatile than Bowen Acquisition Corp. It trades about 0.17 of its potential returns per unit of risk. Bowen Acquisition Corp is currently generating about -0.07 per unit of risk. If you would invest 393.00 in Valneva SE ADR on October 14, 2024 and sell it today you would earn a total of 61.00 from holding Valneva SE ADR or generate 15.52% 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. Bowen Acquisition Corp
Performance |
| Timeline |
| Valneva SE ADR |
| Bowen Acquisition Corp |
Valneva SE and Bowen Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Bowen Acquisition
The main advantage of trading using opposite Valneva SE and Bowen Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Bowen Acquisition 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 Bowen Acquisition will offset losses from the drop in Bowen Acquisition'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 |
| Bowen Acquisition vs. Vishay Precision Group | Bowen Acquisition vs. Tower Semiconductor | Bowen Acquisition vs. BioNTech SE | Bowen Acquisition vs. Valneva SE ADR |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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