Correlation Between Valneva SE and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Cedar Realty 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 Cedar Realty 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 Cedar Realty Trust, you can compare the effects of market volatilities on Valneva SE and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Cedar Realty.
Diversification Opportunities for Valneva SE and Cedar Realty
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Cedar is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Valneva SE i.e., Valneva SE and Cedar Realty go up and down completely randomly.
Pair Corralation between Valneva SE and Cedar Realty
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Cedar Realty. In addition to that, Valneva SE is 1.28 times more volatile than Cedar Realty Trust. It trades about -0.05 of its total potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.04 per unit of volatility. If you would invest 1,081 in Cedar Realty Trust on August 30, 2024 and sell it today you would earn a total of 539.00 from holding Cedar Realty Trust or generate 49.86% 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. Cedar Realty Trust
Performance |
| Timeline |
| Valneva SE ADR |
| Cedar Realty Trust |
Valneva SE and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Cedar Realty
The main advantage of trading using opposite Valneva SE and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Valneva SE vs. Bright Minds Biosciences | Valneva SE vs. HP Inc | Valneva SE vs. Intel | Valneva SE vs. Chevron Corp |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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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