Correlation Between Valneva SE and Life Time
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Life Time 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 Life Time 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 Life Time Group, you can compare the effects of market volatilities on Valneva SE and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Life Time.
Diversification Opportunities for Valneva SE and Life Time
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valneva and Life is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Valneva SE i.e., Valneva SE and Life Time go up and down completely randomly.
Pair Corralation between Valneva SE and Life Time
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Life Time. In addition to that, Valneva SE is 1.27 times more volatile than Life Time Group. It trades about -0.36 of its total potential returns per unit of risk. Life Time Group is currently generating about 0.03 per unit of volatility. If you would invest 2,342 in Life Time Group on August 31, 2024 and sell it today you would earn a total of 64.00 from holding Life Time Group or generate 2.73% 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. Life Time Group
Performance |
| Timeline |
| Valneva SE ADR |
| Life Time Group |
Valneva SE and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Life Time
The main advantage of trading using opposite Valneva SE and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time'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 |
| Life Time vs. Bowlero Corp | Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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