Correlation Between Valneva SE and EnGene Holdings
Can any of the company-specific risk be diversified away by investing in both Valneva SE and EnGene Holdings 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 EnGene Holdings 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 enGene Holdings Common, you can compare the effects of market volatilities on Valneva SE and EnGene Holdings 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 EnGene Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and EnGene Holdings.
Diversification Opportunities for Valneva SE and EnGene Holdings
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valneva and EnGene is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and enGene Holdings Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enGene Holdings Common 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 EnGene Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enGene Holdings Common has no effect on the direction of Valneva SE i.e., Valneva SE and EnGene Holdings go up and down completely randomly.
Pair Corralation between Valneva SE and EnGene Holdings
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the EnGene Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.13 times less risky than EnGene Holdings. The stock trades about -0.44 of its potential returns per unit of risk. The enGene Holdings Common is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 905.00 in enGene Holdings Common on August 23, 2024 and sell it today you would lose (138.00) from holding enGene Holdings Common or give up 15.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. enGene Holdings Common
Performance |
| Timeline |
| Valneva SE ADR |
| enGene Holdings Common |
Valneva SE and EnGene Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and EnGene Holdings
The main advantage of trading using opposite Valneva SE and EnGene Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, EnGene Holdings 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 EnGene Holdings will offset losses from the drop in EnGene Holdings' long position.| Valneva SE vs. ZyVersa Therapeutics | Valneva SE vs. Sonnet Biotherapeutics Holdings | Valneva SE vs. Zura Bio Limited | Valneva SE vs. Phio Pharmaceuticals Corp |
| EnGene Holdings vs. Terns Pharmaceuticals | EnGene Holdings vs. Acumen Pharmaceuticals | EnGene Holdings vs. Inozyme Pharma | EnGene Holdings 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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