Correlation Between Valneva SE and Jaws Hurricane
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Jaws Hurricane 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 Jaws Hurricane 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 Jaws Hurricane Acquisition, you can compare the effects of market volatilities on Valneva SE and Jaws Hurricane 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 Jaws Hurricane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Jaws Hurricane.
Diversification Opportunities for Valneva SE and Jaws Hurricane
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Jaws is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Jaws Hurricane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaws Hurricane Acqui 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 Jaws Hurricane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaws Hurricane Acqui has no effect on the direction of Valneva SE i.e., Valneva SE and Jaws Hurricane go up and down completely randomly.
Pair Corralation between Valneva SE and Jaws Hurricane
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Jaws Hurricane. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 28.21 times less risky than Jaws Hurricane. The stock trades about -0.08 of its potential returns per unit of risk. The Jaws Hurricane Acquisition is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.13 in Jaws Hurricane Acquisition on September 2, 2024 and sell it today you would lose (0.03) from holding Jaws Hurricane Acquisition or give up 23.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.61% |
| Values | Daily Returns |
Valneva SE ADR vs. Jaws Hurricane Acquisition
Performance |
| Timeline |
| Valneva SE ADR |
| Jaws Hurricane Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valneva SE and Jaws Hurricane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Jaws Hurricane
The main advantage of trading using opposite Valneva SE and Jaws Hurricane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Jaws Hurricane 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 Jaws Hurricane will offset losses from the drop in Jaws Hurricane's long position.| Valneva SE vs. Tff Pharmaceuticals | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Inhibrx | Valneva SE vs. Enliven Therapeutics |
| Jaws Hurricane vs. Xponential Fitness | Jaws Hurricane vs. Cebu Air ADR | Jaws Hurricane vs. Mesa Air Group | Jaws Hurricane vs. National CineMedia |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |