Correlation Between Valneva SE and Ihuman
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Ihuman 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 Ihuman 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 Ihuman Inc, you can compare the effects of market volatilities on Valneva SE and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Ihuman.
Diversification Opportunities for Valneva SE and Ihuman
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Ihuman is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Valneva SE i.e., Valneva SE and Ihuman go up and down completely randomly.
Pair Corralation between Valneva SE and Ihuman
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 4.32 times more return on investment than Ihuman. However, Valneva SE is 4.32 times more volatile than Ihuman Inc. It trades about 0.3 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.34 per unit of risk. If you would invest 485.00 in Valneva SE ADR on November 28, 2024 and sell it today you would earn a total of 256.00 from holding Valneva SE ADR or generate 52.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Ihuman Inc
Performance |
| Timeline |
| Valneva SE ADR |
| Ihuman Inc |
Valneva SE and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Ihuman
The main advantage of trading using opposite Valneva SE and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman'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 |
| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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