Correlation Between Valneva SE and Minerals Technologies
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Minerals 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 Minerals 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 Minerals Technologies, you can compare the effects of market volatilities on Valneva SE and Minerals 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 Minerals Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Minerals Technologies.
Diversification Opportunities for Valneva SE and Minerals Technologies
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Minerals is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Minerals Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerals 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 Minerals Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerals Technologies has no effect on the direction of Valneva SE i.e., Valneva SE and Minerals Technologies go up and down completely randomly.
Pair Corralation between Valneva SE and Minerals Technologies
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Minerals Technologies. In addition to that, Valneva SE is 1.2 times more volatile than Minerals Technologies. It trades about -0.61 of its total potential returns per unit of risk. Minerals Technologies is currently generating about 0.13 per unit of volatility. If you would invest 7,593 in Minerals Technologies on August 30, 2024 and sell it today you would earn a total of 520.00 from holding Minerals Technologies or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Minerals Technologies
Performance |
| Timeline |
| Valneva SE ADR |
| Minerals Technologies |
Valneva SE and Minerals Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Minerals Technologies
The main advantage of trading using opposite Valneva SE and Minerals Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Minerals 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 Minerals Technologies will offset losses from the drop in Minerals Technologies' long position.| Valneva SE vs. Ikena Oncology | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. RenovoRx |
| Minerals Technologies vs. Quaker Chemical | Minerals Technologies vs. Innospec | Minerals Technologies vs. H B Fuller | Minerals Technologies vs. Cabot |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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