Correlation Between Valneva SE and Marine Bancorp
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Marine Bancorp 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 Marine Bancorp 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 Marine Bancorp of, you can compare the effects of market volatilities on Valneva SE and Marine Bancorp 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 Marine Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Marine Bancorp.
Diversification Opportunities for Valneva SE and Marine Bancorp
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valneva and Marine is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Marine Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Bancorp 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 Marine Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Bancorp has no effect on the direction of Valneva SE i.e., Valneva SE and Marine Bancorp go up and down completely randomly.
Pair Corralation between Valneva SE and Marine Bancorp
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Marine Bancorp. In addition to that, Valneva SE is 15.62 times more volatile than Marine Bancorp of. It trades about -0.3 of its total potential returns per unit of risk. Marine Bancorp of is currently generating about 0.26 per unit of volatility. If you would invest 3,950 in Marine Bancorp of on September 15, 2024 and sell it today you would earn a total of 50.00 from holding Marine Bancorp of or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Valneva SE ADR vs. Marine Bancorp of
Performance |
| Timeline |
| Valneva SE ADR |
| Marine Bancorp |
Valneva SE and Marine Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Marine Bancorp
The main advantage of trading using opposite Valneva SE and Marine Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Marine Bancorp 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 Marine Bancorp will offset losses from the drop in Marine Bancorp's long position.| Valneva SE vs. Puma Biotechnology | Valneva SE vs. Iovance Biotherapeutics | Valneva SE vs. Day One Biopharmaceuticals | Valneva SE vs. Inozyme Pharma |
| Marine Bancorp vs. Acumen Pharmaceuticals | Marine Bancorp vs. Valneva SE ADR | Marine Bancorp vs. CECO Environmental Corp | Marine Bancorp vs. Highway Holdings Limited |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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