Correlation Between Valneva SE and Massachusetts Electric
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Massachusetts Electric 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 Massachusetts Electric 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 Massachusetts Electric, you can compare the effects of market volatilities on Valneva SE and Massachusetts Electric 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 Massachusetts Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Massachusetts Electric.
Diversification Opportunities for Valneva SE and Massachusetts Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Massachusetts is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Massachusetts Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massachusetts Electric 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 Massachusetts Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massachusetts Electric has no effect on the direction of Valneva SE i.e., Valneva SE and Massachusetts Electric go up and down completely randomly.
Pair Corralation between Valneva SE and Massachusetts Electric
If you would invest 420.00 in Valneva SE ADR on October 27, 2024 and sell it today you would earn a total of 54.00 from holding Valneva SE ADR or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Massachusetts Electric
Performance |
| Timeline |
| Valneva SE ADR |
| Massachusetts Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valneva SE and Massachusetts Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Massachusetts Electric
The main advantage of trading using opposite Valneva SE and Massachusetts Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Massachusetts Electric 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 Massachusetts Electric will offset losses from the drop in Massachusetts Electric's long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Massachusetts Electric vs. American Hotel Income | Massachusetts Electric vs. Ballys Corp | Massachusetts Electric vs. Orion Office Reit | Massachusetts Electric vs. BJs Restaurants |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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