Correlation Between Valneva SE and CareMax
Can any of the company-specific risk be diversified away by investing in both Valneva SE and CareMax 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 CareMax 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 CareMax, you can compare the effects of market volatilities on Valneva SE and CareMax 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 CareMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and CareMax.
Diversification Opportunities for Valneva SE and CareMax
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valneva and CareMax is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and CareMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareMax 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 CareMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareMax has no effect on the direction of Valneva SE i.e., Valneva SE and CareMax go up and down completely randomly.
Pair Corralation between Valneva SE and CareMax
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.18 times more return on investment than CareMax. However, Valneva SE ADR is 5.7 times less risky than CareMax. It trades about -0.04 of its potential returns per unit of risk. CareMax is currently generating about -0.05 per unit of risk. If you would invest 1,504 in Valneva SE ADR on November 19, 2024 and sell it today you would lose (837.00) from holding Valneva SE ADR or give up 55.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. CareMax
Performance |
| Timeline |
| Valneva SE ADR |
| CareMax |
Valneva SE and CareMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and CareMax
The main advantage of trading using opposite Valneva SE and CareMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, CareMax 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 CareMax will offset losses from the drop in CareMax'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 |
| CareMax vs. Evolent Health | CareMax vs. Certara | CareMax vs. Privia Health Group | CareMax vs. HealthStream |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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