Correlation Between Valneva SE and Capital Clean
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Capital Clean 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 Capital Clean 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 Capital Clean Energy, you can compare the effects of market volatilities on Valneva SE and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Capital Clean.
Diversification Opportunities for Valneva SE and Capital Clean
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valneva and Capital is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of Valneva SE i.e., Valneva SE and Capital Clean go up and down completely randomly.
Pair Corralation between Valneva SE and Capital Clean
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Capital Clean. In addition to that, Valneva SE is 1.62 times more volatile than Capital Clean Energy. It trades about -0.08 of its total potential returns per unit of risk. Capital Clean Energy is currently generating about 0.02 per unit of volatility. If you would invest 1,719 in Capital Clean Energy on August 29, 2024 and sell it today you would earn a total of 96.00 from holding Capital Clean Energy or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Capital Clean Energy
Performance |
| Timeline |
| Valneva SE ADR |
| Capital Clean Energy |
Valneva SE and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Capital Clean
The main advantage of trading using opposite Valneva SE and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| Valneva SE vs. Bright Minds Biosciences | Valneva SE vs. HP Inc | Valneva SE vs. Intel | Valneva SE vs. Chevron Corp |
| Capital Clean vs. RadNet Inc | Capital Clean vs. MACOM Technology Solutions | Capital Clean vs. Elmos Semiconductor SE | Capital Clean vs. Lipocine |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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