Correlation Between Valneva SE and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Mapletree Logistics 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 Mapletree Logistics 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 Mapletree Logistics Trust, you can compare the effects of market volatilities on Valneva SE and Mapletree Logistics 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 Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Mapletree Logistics.
Diversification Opportunities for Valneva SE and Mapletree Logistics
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Valneva and Mapletree is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust 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 Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of Valneva SE i.e., Valneva SE and Mapletree Logistics go up and down completely randomly.
Pair Corralation between Valneva SE and Mapletree Logistics
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Mapletree Logistics. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.0 times less risky than Mapletree Logistics. The stock trades about -0.05 of its potential returns per unit of risk. The Mapletree Logistics Trust is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 116.00 in Mapletree Logistics Trust on September 3, 2024 and sell it today you would lose (15.00) from holding Mapletree Logistics Trust or give up 12.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 69.05% |
| Values | Daily Returns |
Valneva SE ADR vs. Mapletree Logistics Trust
Performance |
| Timeline |
| Valneva SE ADR |
| Mapletree Logistics Trust |
Valneva SE and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Mapletree Logistics
The main advantage of trading using opposite Valneva SE and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Mapletree Logistics vs. Palo Alto Networks | Mapletree Logistics vs. Singular Genomics Systems | Mapletree Logistics vs. BlackRock | Mapletree Logistics vs. Deckers Outdoor |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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