Correlation Between Valneva SE and Curis
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Curis 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 Curis 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 Curis Inc, you can compare the effects of market volatilities on Valneva SE and Curis 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 Curis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Curis.
Diversification Opportunities for Valneva SE and Curis
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Curis is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Curis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curis Inc 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 Curis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curis Inc has no effect on the direction of Valneva SE i.e., Valneva SE and Curis go up and down completely randomly.
Pair Corralation between Valneva SE and Curis
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Curis. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.31 times less risky than Curis. The stock trades about -0.62 of its potential returns per unit of risk. The Curis Inc is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Curis Inc on August 29, 2024 and sell it today you would lose (89.00) from holding Curis Inc or give up 18.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Curis Inc
Performance |
| Timeline |
| Valneva SE ADR |
| Curis Inc |
Valneva SE and Curis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Curis
The main advantage of trading using opposite Valneva SE and Curis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Curis 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 Curis will offset losses from the drop in Curis' long position.| Valneva SE vs. Bright Minds Biosciences | Valneva SE vs. HP Inc | Valneva SE vs. Intel | Valneva SE vs. Chevron Corp |
| Curis vs. Aileron Therapeutics | Curis vs. Artelo Biosciences | Curis vs. Histogen | Curis vs. X4 Pharmaceuticals |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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