Correlation Between Valneva SE and Corbus Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Corbus Pharmaceuticals 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 Corbus Pharmaceuticals 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 Corbus Pharmaceuticals Holding, you can compare the effects of market volatilities on Valneva SE and Corbus Pharmaceuticals 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 Corbus Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Corbus Pharmaceuticals.
Diversification Opportunities for Valneva SE and Corbus Pharmaceuticals
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Corbus is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Corbus Pharmaceuticals Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corbus Pharmaceuticals 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 Corbus Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corbus Pharmaceuticals has no effect on the direction of Valneva SE i.e., Valneva SE and Corbus Pharmaceuticals go up and down completely randomly.
Pair Corralation between Valneva SE and Corbus Pharmaceuticals
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.28 times more return on investment than Corbus Pharmaceuticals. However, Valneva SE ADR is 3.6 times less risky than Corbus Pharmaceuticals. It trades about -0.35 of its potential returns per unit of risk. Corbus Pharmaceuticals Holding is currently generating about -0.13 per unit of risk. If you would invest 758.00 in Valneva SE ADR on August 28, 2024 and sell it today you would lose (328.00) from holding Valneva SE ADR or give up 43.27% 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. Corbus Pharmaceuticals Holding
Performance |
| Timeline |
| Valneva SE ADR |
| Corbus Pharmaceuticals |
Valneva SE and Corbus Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Corbus Pharmaceuticals
The main advantage of trading using opposite Valneva SE and Corbus Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Corbus Pharmaceuticals 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 Corbus Pharmaceuticals will offset losses from the drop in Corbus Pharmaceuticals' long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
| Corbus Pharmaceuticals vs. Trevi Therapeutics | Corbus Pharmaceuticals vs. Cue Biopharma | Corbus Pharmaceuticals vs. AN2 Therapeutics | Corbus Pharmaceuticals vs. Bioatla |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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