Correlation Between Valneva SE and Boston Properties
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Boston Properties 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 Boston Properties 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 Boston Properties, you can compare the effects of market volatilities on Valneva SE and Boston Properties 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 Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Boston Properties.
Diversification Opportunities for Valneva SE and Boston Properties
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valneva and Boston is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties 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 Boston Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Properties has no effect on the direction of Valneva SE i.e., Valneva SE and Boston Properties go up and down completely randomly.
Pair Corralation between Valneva SE and Boston Properties
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Boston Properties. In addition to that, Valneva SE is 2.04 times more volatile than Boston Properties. It trades about -0.58 of its total potential returns per unit of risk. Boston Properties is currently generating about 0.01 per unit of volatility. If you would invest 8,275 in Boston Properties on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Boston Properties or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Boston Properties
Performance |
| Timeline |
| Valneva SE ADR |
| Boston Properties |
Valneva SE and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Boston Properties
The main advantage of trading using opposite Valneva SE and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Boston Properties 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 Boston Properties will offset losses from the drop in Boston Properties' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Boston Properties vs. SL Green Realty | Boston Properties vs. Douglas Emmett | Boston Properties vs. Kilroy Realty Corp | Boston Properties vs. Alexandria Real Estate |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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