Correlation Between Valneva SE and Cytek Biosciences
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Cytek Biosciences 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 Cytek Biosciences 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 Cytek Biosciences, you can compare the effects of market volatilities on Valneva SE and Cytek Biosciences 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 Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Cytek Biosciences.
Diversification Opportunities for Valneva SE and Cytek Biosciences
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valneva and Cytek is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences 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 Cytek Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytek Biosciences has no effect on the direction of Valneva SE i.e., Valneva SE and Cytek Biosciences go up and down completely randomly.
Pair Corralation between Valneva SE and Cytek Biosciences
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Cytek Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 2.91 times less risky than Cytek Biosciences. The stock trades about -0.59 of its potential returns per unit of risk. The Cytek Biosciences is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Cytek Biosciences on September 3, 2024 and sell it today you would earn a total of 133.00 from holding Cytek Biosciences or generate 25.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Cytek Biosciences
Performance |
| Timeline |
| Valneva SE ADR |
| Cytek Biosciences |
Valneva SE and Cytek Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Cytek Biosciences
The main advantage of trading using opposite Valneva SE and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Cytek Biosciences 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 Cytek Biosciences will offset losses from the drop in Cytek Biosciences' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Cytek Biosciences vs. Orthopediatrics Corp | Cytek Biosciences vs. Electromed | Cytek Biosciences vs. Pulmonx Corp | Cytek Biosciences vs. Rxsight |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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