Correlation Between Valneva SE and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Getty Realty 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 Getty Realty 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 Getty Realty, you can compare the effects of market volatilities on Valneva SE and Getty Realty 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 Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Getty Realty.
Diversification Opportunities for Valneva SE and Getty Realty
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valneva and Getty is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty 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 Getty Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Realty has no effect on the direction of Valneva SE i.e., Valneva SE and Getty Realty go up and down completely randomly.
Pair Corralation between Valneva SE and Getty Realty
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Getty Realty. In addition to that, Valneva SE is 2.87 times more volatile than Getty Realty. It trades about -0.05 of its total potential returns per unit of risk. Getty Realty is currently generating about 0.02 per unit of volatility. If you would invest 3,077 in Getty Realty on August 26, 2024 and sell it today you would earn a total of 178.00 from holding Getty Realty or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Getty Realty
Performance |
| Timeline |
| Valneva SE ADR |
| Getty Realty |
Valneva SE and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Getty Realty
The main advantage of trading using opposite Valneva SE and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Getty Realty 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 Getty Realty will offset losses from the drop in Getty Realty's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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