Correlation Between Valneva SE and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Electrovaya Common 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 Electrovaya Common 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 Electrovaya Common Shares, you can compare the effects of market volatilities on Valneva SE and Electrovaya Common 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 Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Electrovaya Common.
Diversification Opportunities for Valneva SE and Electrovaya Common
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valneva and Electrovaya is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares 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 Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of Valneva SE i.e., Valneva SE and Electrovaya Common go up and down completely randomly.
Pair Corralation between Valneva SE and Electrovaya Common
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Electrovaya Common. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.24 times less risky than Electrovaya Common. The stock trades about -0.41 of its potential returns per unit of risk. The Electrovaya Common Shares is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Electrovaya Common Shares on August 24, 2024 and sell it today you would earn a total of 19.00 from holding Electrovaya Common Shares or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Electrovaya Common Shares
Performance |
| Timeline |
| Valneva SE ADR |
| Electrovaya Common Shares |
Valneva SE and Electrovaya Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Electrovaya Common
The main advantage of trading using opposite Valneva SE and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common's long position.| Valneva SE vs. Lyra Therapeutics | Valneva SE vs. Hookipa Pharma | Valneva SE vs. Cingulate Warrants | Valneva SE vs. SAB Biotherapeutics |
| Electrovaya Common vs. Plug Power | Electrovaya Common vs. Solid Power | Electrovaya Common vs. CBAK Energy Technology | Electrovaya Common vs. FuelCell Energy |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |