Correlation Between Valneva SE and Continental Resources
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Continental Resources 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 Continental Resources 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 Continental Resources, you can compare the effects of market volatilities on Valneva SE and Continental Resources 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 Continental Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Continental Resources.
Diversification Opportunities for Valneva SE and Continental Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Continental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Continental Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Resources 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 Continental Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental Resources has no effect on the direction of Valneva SE i.e., Valneva SE and Continental Resources go up and down completely randomly.
Pair Corralation between Valneva SE and Continental Resources
If you would invest 7,427 in Continental Resources on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Continental Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Valneva SE ADR vs. Continental Resources
Performance |
| Timeline |
| Valneva SE ADR |
| Continental Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valneva SE and Continental Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Continental Resources
The main advantage of trading using opposite Valneva SE and Continental Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Continental Resources 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 Continental Resources will offset losses from the drop in Continental Resources' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Continental Resources vs. Global Ship Lease | Continental Resources vs. Air Lease | Continental Resources vs. ON Semiconductor | Continental Resources vs. Elmos Semiconductor SE |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |