Correlation Between Valneva SE and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Cumulus Media 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 Cumulus Media 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 Cumulus Media Class, you can compare the effects of market volatilities on Valneva SE and Cumulus Media 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 Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Cumulus Media.
Diversification Opportunities for Valneva SE and Cumulus Media
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Cumulus is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class 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 Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Valneva SE i.e., Valneva SE and Cumulus Media go up and down completely randomly.
Pair Corralation between Valneva SE and Cumulus Media
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.47 times more return on investment than Cumulus Media. However, Valneva SE ADR is 2.13 times less risky than Cumulus Media. It trades about -0.49 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.26 per unit of risk. If you would invest 565.00 in Valneva SE ADR on September 1, 2024 and sell it today you would lose (160.00) from holding Valneva SE ADR or give up 28.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Cumulus Media Class
Performance |
| Timeline |
| Valneva SE ADR |
| Cumulus Media Class |
Valneva SE and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Cumulus Media
The main advantage of trading using opposite Valneva SE and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Cumulus Media 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 Cumulus Media will offset losses from the drop in Cumulus Media'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 |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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