Correlation Between Valneva SE and Fevertree Drinks
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Fevertree Drinks 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 Fevertree Drinks 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 Fevertree Drinks Plc, you can compare the effects of market volatilities on Valneva SE and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Fevertree Drinks.
Diversification Opportunities for Valneva SE and Fevertree Drinks
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Valneva and Fevertree is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Fevertree Drinks Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks Plc 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks Plc has no effect on the direction of Valneva SE i.e., Valneva SE and Fevertree Drinks go up and down completely randomly.
Pair Corralation between Valneva SE and Fevertree Drinks
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.58 times more return on investment than Fevertree Drinks. However, Valneva SE ADR is 1.72 times less risky than Fevertree Drinks. It trades about 0.33 of its potential returns per unit of risk. Fevertree Drinks Plc is currently generating about 0.13 per unit of risk. If you would invest 472.00 in Valneva SE ADR on November 3, 2024 and sell it today you would earn a total of 106.00 from holding Valneva SE ADR or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Fevertree Drinks Plc
Performance |
| Timeline |
| Valneva SE ADR |
| Fevertree Drinks Plc |
Valneva SE and Fevertree Drinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Fevertree Drinks
The main advantage of trading using opposite Valneva SE and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Fevertree Drinks vs. National Beverage Corp | Fevertree Drinks vs. Celsius Holdings | Fevertree Drinks vs. Monster Beverage Corp | Fevertree Drinks vs. Coca Cola Femsa SAB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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