Correlation Between Valneva SE and Mustang Bio
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Mustang Bio 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 Mustang Bio 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 Mustang Bio, you can compare the effects of market volatilities on Valneva SE and Mustang Bio 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 Mustang Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Mustang Bio.
Diversification Opportunities for Valneva SE and Mustang Bio
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Mustang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Mustang Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mustang Bio 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 Mustang Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mustang Bio has no effect on the direction of Valneva SE i.e., Valneva SE and Mustang Bio go up and down completely randomly.
Pair Corralation between Valneva SE and Mustang Bio
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.67 times more return on investment than Mustang Bio. However, Valneva SE ADR is 1.5 times less risky than Mustang Bio. It trades about -0.58 of its potential returns per unit of risk. Mustang Bio is currently generating about -0.44 per unit of risk. If you would invest 609.00 in Valneva SE ADR on August 28, 2024 and sell it today you would lose (179.00) from holding Valneva SE ADR or give up 29.39% 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. Mustang Bio
Performance |
| Timeline |
| Valneva SE ADR |
| Mustang Bio |
Valneva SE and Mustang Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Mustang Bio
The main advantage of trading using opposite Valneva SE and Mustang Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Mustang Bio 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 Mustang Bio will offset losses from the drop in Mustang Bio's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
| Mustang Bio vs. Checkpoint Therapeutics | Mustang Bio vs. Reviva Pharmaceuticals Holdings | Mustang Bio vs. Fortress Biotech Pref | Mustang Bio vs. Kodiak Sciences |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |