Correlation Between Valneva SE and Mesoblast
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Mesoblast 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 Mesoblast 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 Mesoblast, you can compare the effects of market volatilities on Valneva SE and Mesoblast 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 Mesoblast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Mesoblast.
Diversification Opportunities for Valneva SE and Mesoblast
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Mesoblast is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Mesoblast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesoblast 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 Mesoblast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesoblast has no effect on the direction of Valneva SE i.e., Valneva SE and Mesoblast go up and down completely randomly.
Pair Corralation between Valneva SE and Mesoblast
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Mesoblast. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 2.18 times less risky than Mesoblast. The stock trades about -0.58 of its potential returns per unit of risk. The Mesoblast is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 911.00 in Mesoblast on August 28, 2024 and sell it today you would earn a total of 192.00 from holding Mesoblast or generate 21.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Mesoblast
Performance |
| Timeline |
| Valneva SE ADR |
| Mesoblast |
Valneva SE and Mesoblast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Mesoblast
The main advantage of trading using opposite Valneva SE and Mesoblast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Mesoblast 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 Mesoblast will offset losses from the drop in Mesoblast's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
| Mesoblast vs. Aditxt Inc | Mesoblast vs. Lipocine | Mesoblast vs. Connect Biopharma Holdings | Mesoblast 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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