Correlation Between Valneva SE and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Dine Brands 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 Dine Brands 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 Dine Brands Global, you can compare the effects of market volatilities on Valneva SE and Dine Brands 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 Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Dine Brands.
Diversification Opportunities for Valneva SE and Dine Brands
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valneva and Dine is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Dine Brands Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dine Brands Global 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 Dine Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dine Brands Global has no effect on the direction of Valneva SE i.e., Valneva SE and Dine Brands go up and down completely randomly.
Pair Corralation between Valneva SE and Dine Brands
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Dine Brands. In addition to that, Valneva SE is 1.49 times more volatile than Dine Brands Global. It trades about -0.05 of its total potential returns per unit of risk. Dine Brands Global is currently generating about -0.03 per unit of volatility. If you would invest 6,349 in Dine Brands Global on September 2, 2024 and sell it today you would lose (2,757) from holding Dine Brands Global or give up 43.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Dine Brands Global
Performance |
| Timeline |
| Valneva SE ADR |
| Dine Brands Global |
Valneva SE and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Dine Brands
The main advantage of trading using opposite Valneva SE and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Dine Brands 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 Dine Brands will offset losses from the drop in Dine Brands' long position.| Valneva SE vs. Tff Pharmaceuticals | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Inhibrx | Valneva SE vs. Enliven Therapeutics |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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