Correlation Between Valneva SE and Genfit
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Genfit 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 Genfit 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 Genfit, you can compare the effects of market volatilities on Valneva SE and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Genfit.
Diversification Opportunities for Valneva SE and Genfit
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Valneva and Genfit is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Valneva SE i.e., Valneva SE and Genfit go up and down completely randomly.
Pair Corralation between Valneva SE and Genfit
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Genfit. In addition to that, Valneva SE is 1.07 times more volatile than Genfit. It trades about -0.03 of its total potential returns per unit of risk. Genfit is currently generating about 0.03 per unit of volatility. If you would invest 347.00 in Genfit on November 11, 2024 and sell it today you would earn a total of 28.00 from holding Genfit or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.86% |
| Values | Daily Returns |
Valneva SE ADR vs. Genfit
Performance |
| Timeline |
| Valneva SE ADR |
| Genfit |
Valneva SE and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Genfit
The main advantage of trading using opposite Valneva SE and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit'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 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |