Correlation Between Valneva SE and Innate Pharma
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Innate Pharma 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 Innate Pharma 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 Innate Pharma, you can compare the effects of market volatilities on Valneva SE and Innate Pharma 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 Innate Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Innate Pharma.
Diversification Opportunities for Valneva SE and Innate Pharma
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valneva and Innate is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Innate Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innate Pharma 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 Innate Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innate Pharma has no effect on the direction of Valneva SE i.e., Valneva SE and Innate Pharma go up and down completely randomly.
Pair Corralation between Valneva SE and Innate Pharma
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 1.16 times more return on investment than Innate Pharma. However, Valneva SE is 1.16 times more volatile than Innate Pharma. It trades about -0.01 of its potential returns per unit of risk. Innate Pharma is currently generating about -0.03 per unit of risk. If you would invest 664.00 in Valneva SE ADR on November 1, 2024 and sell it today you would lose (145.00) from holding Valneva SE ADR or give up 21.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.7% |
| Values | Daily Returns |
Valneva SE ADR vs. Innate Pharma
Performance |
| Timeline |
| Valneva SE ADR |
| Innate Pharma |
Valneva SE and Innate Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Innate Pharma
The main advantage of trading using opposite Valneva SE and Innate Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Innate Pharma 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 Innate Pharma will offset losses from the drop in Innate Pharma'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 |
| Innate Pharma vs. Genfit | Innate Pharma vs. Nanobiotix SA | Innate Pharma vs. Cellectis | Innate Pharma vs. AB Science SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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