Correlation Between Valneva SE and Naked Wines
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Naked Wines 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 Naked Wines 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 Naked Wines plc, you can compare the effects of market volatilities on Valneva SE and Naked Wines 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 Naked Wines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Naked Wines.
Diversification Opportunities for Valneva SE and Naked Wines
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valneva and Naked is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Naked Wines plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naked Wines plc 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 Naked Wines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naked Wines plc has no effect on the direction of Valneva SE i.e., Valneva SE and Naked Wines go up and down completely randomly.
Pair Corralation between Valneva SE and Naked Wines
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Naked Wines. In addition to that, Valneva SE is 2.79 times more volatile than Naked Wines plc. It trades about -0.28 of its total potential returns per unit of risk. Naked Wines plc is currently generating about -0.23 per unit of volatility. If you would invest 271.00 in Naked Wines plc on September 19, 2024 and sell it today you would lose (16.00) from holding Naked Wines plc or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Valneva SE ADR vs. Naked Wines plc
Performance |
| Timeline |
| Valneva SE ADR |
| Naked Wines plc |
Valneva SE and Naked Wines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Naked Wines
The main advantage of trading using opposite Valneva SE and Naked Wines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Naked Wines 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 Naked Wines will offset losses from the drop in Naked Wines' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Naked Wines plc | Naked Wines vs. Crimson Wine | Naked Wines vs. Brown Forman |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |