Correlation Between Valneva SE and Helio
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Helio 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 Helio 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 Helio, you can compare the effects of market volatilities on Valneva SE and Helio 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 Helio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Helio.
Diversification Opportunities for Valneva SE and Helio
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Valneva and Helio is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Helio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helio 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 Helio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helio has no effect on the direction of Valneva SE i.e., Valneva SE and Helio go up and down completely randomly.
Pair Corralation between Valneva SE and Helio
Given the investment horizon of 90 days Valneva SE is expected to generate 2.42 times less return on investment than Helio. But when comparing it to its historical volatility, Valneva SE ADR is 4.52 times less risky than Helio. It trades about 0.32 of its potential returns per unit of risk. Helio is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Helio on November 3, 2024 and sell it today you would earn a total of 208.00 from holding Helio or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Valneva SE ADR vs. Helio
Performance |
| Timeline |
| Valneva SE ADR |
| Helio |
Valneva SE and Helio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Helio
The main advantage of trading using opposite Valneva SE and Helio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Helio 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 Helio will offset losses from the drop in Helio'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 |
| Helio vs. East Africa Metals | Helio vs. Eldorado Gold Corp | Helio vs. Copperbank Resources Corp | Helio vs. PepsiCo |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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