Correlation Between Valneva SE and Jasper Therapeutics
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Jasper Therapeutics 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 Jasper Therapeutics 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 Jasper Therapeutics, you can compare the effects of market volatilities on Valneva SE and Jasper Therapeutics 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 Jasper Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Jasper Therapeutics.
Diversification Opportunities for Valneva SE and Jasper Therapeutics
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valneva and Jasper is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Jasper Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasper Therapeutics 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 Jasper Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasper Therapeutics has no effect on the direction of Valneva SE i.e., Valneva SE and Jasper Therapeutics go up and down completely randomly.
Pair Corralation between Valneva SE and Jasper Therapeutics
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Jasper Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 6.02 times less risky than Jasper Therapeutics. The stock trades about -0.05 of its potential returns per unit of risk. The Jasper Therapeutics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 554.00 in Jasper Therapeutics on September 13, 2024 and sell it today you would earn a total of 1,677 from holding Jasper Therapeutics or generate 302.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Jasper Therapeutics
Performance |
| Timeline |
| Valneva SE ADR |
| Jasper Therapeutics |
Valneva SE and Jasper Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Jasper Therapeutics
The main advantage of trading using opposite Valneva SE and Jasper Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Jasper Therapeutics 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 Jasper Therapeutics will offset losses from the drop in Jasper Therapeutics' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Jasper Therapeutics vs. Lyra Therapeutics | Jasper Therapeutics vs. Equillium | Jasper Therapeutics vs. Hookipa Pharma | Jasper Therapeutics vs. Acumen Pharmaceuticals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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