Correlation Between Valneva SE and China Aircraft
Can any of the company-specific risk be diversified away by investing in both Valneva SE and China Aircraft 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 China Aircraft 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 China Aircraft Leasing, you can compare the effects of market volatilities on Valneva SE and China Aircraft 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 China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and China Aircraft.
Diversification Opportunities for Valneva SE and China Aircraft
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valneva and China is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and China Aircraft Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aircraft Leasing 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 China Aircraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aircraft Leasing has no effect on the direction of Valneva SE i.e., Valneva SE and China Aircraft go up and down completely randomly.
Pair Corralation between Valneva SE and China Aircraft
If you would invest 40.00 in China Aircraft Leasing on September 3, 2024 and sell it today you would earn a total of 0.00 from holding China Aircraft Leasing or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. China Aircraft Leasing
Performance |
| Timeline |
| Valneva SE ADR |
| China Aircraft Leasing |
Valneva SE and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and China Aircraft
The main advantage of trading using opposite Valneva SE and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, China Aircraft 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 China Aircraft will offset losses from the drop in China Aircraft'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 |
| China Aircraft vs. United Rentals | China Aircraft vs. Ashtead Gro | China Aircraft vs. Ashtead Group plc | China Aircraft vs. AerCap Holdings NV |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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