Correlation Between Valneva SE and Marti Technologies
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Marti Technologies 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 Marti Technologies 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 Marti Technologies, you can compare the effects of market volatilities on Valneva SE and Marti Technologies 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 Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Marti Technologies.
Diversification Opportunities for Valneva SE and Marti Technologies
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Valneva and Marti is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies 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 Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Valneva SE i.e., Valneva SE and Marti Technologies go up and down completely randomly.
Pair Corralation between Valneva SE and Marti Technologies
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Marti Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.9 times less risky than Marti Technologies. The stock trades about -0.05 of its potential returns per unit of risk. The Marti Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,015 in Marti Technologies on August 30, 2024 and sell it today you would lose (767.00) from holding Marti Technologies or give up 75.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.51% |
| Values | Daily Returns |
Valneva SE ADR vs. Marti Technologies
Performance |
| Timeline |
| Valneva SE ADR |
| Marti Technologies |
Valneva SE and Marti Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Marti Technologies
The main advantage of trading using opposite Valneva SE and Marti Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Marti Technologies 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 Marti Technologies will offset losses from the drop in Marti Technologies' long position.| Valneva SE vs. Bright Minds Biosciences | Valneva SE vs. HP Inc | Valneva SE vs. Intel | Valneva SE vs. Chevron Corp |
| Marti Technologies vs. Unity Software | Marti Technologies vs. Daily Journal Corp | Marti Technologies vs. C3 Ai Inc | Marti Technologies vs. Blackline |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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