Correlation Between Valneva SE and ImmuCell
Can any of the company-specific risk be diversified away by investing in both Valneva SE and ImmuCell 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 ImmuCell 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 ImmuCell, you can compare the effects of market volatilities on Valneva SE and ImmuCell 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 ImmuCell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and ImmuCell.
Diversification Opportunities for Valneva SE and ImmuCell
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and ImmuCell is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell 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 ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Valneva SE i.e., Valneva SE and ImmuCell go up and down completely randomly.
Pair Corralation between Valneva SE and ImmuCell
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the ImmuCell. In addition to that, Valneva SE is 1.32 times more volatile than ImmuCell. It trades about -0.05 of its total potential returns per unit of risk. ImmuCell is currently generating about -0.03 per unit of volatility. If you would invest 704.00 in ImmuCell on August 25, 2024 and sell it today you would lose (335.00) from holding ImmuCell or give up 47.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Valneva SE ADR vs. ImmuCell
Performance |
| Timeline |
| Valneva SE ADR |
| ImmuCell |
Valneva SE and ImmuCell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and ImmuCell
The main advantage of trading using opposite Valneva SE and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, ImmuCell 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 ImmuCell will offset losses from the drop in ImmuCell's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. RenovoRx | Valneva SE vs. Scpharmaceuticals |
| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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