Correlation Between Valneva SE and DigiAsia Corp
Can any of the company-specific risk be diversified away by investing in both Valneva SE and DigiAsia Corp 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 DigiAsia Corp 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 DigiAsia Corp, you can compare the effects of market volatilities on Valneva SE and DigiAsia Corp 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 DigiAsia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and DigiAsia Corp.
Diversification Opportunities for Valneva SE and DigiAsia Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and DigiAsia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and DigiAsia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiAsia Corp 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 DigiAsia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiAsia Corp has no effect on the direction of Valneva SE i.e., Valneva SE and DigiAsia Corp go up and down completely randomly.
Pair Corralation between Valneva SE and DigiAsia Corp
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the DigiAsia Corp. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 6.41 times less risky than DigiAsia Corp. The stock trades about -0.49 of its potential returns per unit of risk. The DigiAsia Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9.25 in DigiAsia Corp on September 1, 2024 and sell it today you would lose (1.75) from holding DigiAsia Corp or give up 18.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Valneva SE ADR vs. DigiAsia Corp
Performance |
| Timeline |
| Valneva SE ADR |
| DigiAsia Corp |
Valneva SE and DigiAsia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and DigiAsia Corp
The main advantage of trading using opposite Valneva SE and DigiAsia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, DigiAsia Corp 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 DigiAsia Corp will offset losses from the drop in DigiAsia Corp's long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| DigiAsia Corp vs. 51Talk Online Education | DigiAsia Corp vs. SunOpta | DigiAsia Corp vs. Tyson Foods | DigiAsia Corp vs. 17 Education Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |