Correlation Between Valneva SE and Immatics
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Immatics 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 Immatics 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 Immatics NV, you can compare the effects of market volatilities on Valneva SE and Immatics 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 Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Immatics.
Diversification Opportunities for Valneva SE and Immatics
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Immatics is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV 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 Immatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics NV has no effect on the direction of Valneva SE i.e., Valneva SE and Immatics go up and down completely randomly.
Pair Corralation between Valneva SE and Immatics
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Immatics. In addition to that, Valneva SE is 1.33 times more volatile than Immatics NV. It trades about -0.58 of its total potential returns per unit of risk. Immatics NV is currently generating about -0.45 per unit of volatility. If you would invest 928.00 in Immatics NV on August 27, 2024 and sell it today you would lose (169.00) from holding Immatics NV or give up 18.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Immatics NV
Performance |
| Timeline |
| Valneva SE ADR |
| Immatics NV |
Valneva SE and Immatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Immatics
The main advantage of trading using opposite Valneva SE and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Immatics 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 Immatics will offset losses from the drop in Immatics' long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
| Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. Bioatla | Immatics vs. Aerovate Therapeutics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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