Correlation Between Valneva SE and Onconetix
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Onconetix 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 Onconetix 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 Onconetix, you can compare the effects of market volatilities on Valneva SE and Onconetix 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 Onconetix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Onconetix.
Diversification Opportunities for Valneva SE and Onconetix
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Onconetix is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Onconetix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconetix 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 Onconetix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onconetix has no effect on the direction of Valneva SE i.e., Valneva SE and Onconetix go up and down completely randomly.
Pair Corralation between Valneva SE and Onconetix
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.25 times more return on investment than Onconetix. However, Valneva SE ADR is 4.07 times less risky than Onconetix. It trades about -0.08 of its potential returns per unit of risk. Onconetix is currently generating about -0.09 per unit of risk. If you would invest 727.00 in Valneva SE ADR on November 2, 2024 and sell it today you would lose (202.00) from holding Valneva SE ADR or give up 27.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Onconetix
Performance |
| Timeline |
| Valneva SE ADR |
| Onconetix |
Valneva SE and Onconetix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Onconetix
The main advantage of trading using opposite Valneva SE and Onconetix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Onconetix 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 Onconetix will offset losses from the drop in Onconetix'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 |
| Onconetix vs. Belden Inc | Onconetix vs. SunCoke Energy | Onconetix vs. American Hotel Income | Onconetix vs. Olympic Steel |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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