Correlation Between Valneva SE and Chimerix
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Chimerix 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 Chimerix 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 Chimerix, you can compare the effects of market volatilities on Valneva SE and Chimerix 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 Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Chimerix.
Diversification Opportunities for Valneva SE and Chimerix
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valneva and Chimerix is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix 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 Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Valneva SE i.e., Valneva SE and Chimerix go up and down completely randomly.
Pair Corralation between Valneva SE and Chimerix
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Chimerix. In addition to that, Valneva SE is 1.12 times more volatile than Chimerix. It trades about -0.05 of its total potential returns per unit of risk. Chimerix is currently generating about -0.03 per unit of volatility. If you would invest 199.00 in Chimerix on September 3, 2024 and sell it today you would lose (111.00) from holding Chimerix or give up 55.78% 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. Chimerix
Performance |
| Timeline |
| Valneva SE ADR |
| Chimerix |
Valneva SE and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Chimerix
The main advantage of trading using opposite Valneva SE and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix'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 |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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