Correlation Between Valneva SE and OptiNose
Can any of the company-specific risk be diversified away by investing in both Valneva SE and OptiNose 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 OptiNose 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 OptiNose, you can compare the effects of market volatilities on Valneva SE and OptiNose 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 OptiNose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and OptiNose.
Diversification Opportunities for Valneva SE and OptiNose
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Valneva and OptiNose is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and OptiNose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiNose 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 OptiNose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiNose has no effect on the direction of Valneva SE i.e., Valneva SE and OptiNose go up and down completely randomly.
Pair Corralation between Valneva SE and OptiNose
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the OptiNose. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 3.53 times less risky than OptiNose. The stock trades about -0.57 of its potential returns per unit of risk. The OptiNose is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 78.00 in OptiNose on August 28, 2024 and sell it today you would lose (25.00) from holding OptiNose or give up 32.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. OptiNose
Performance |
| Timeline |
| Valneva SE ADR |
| OptiNose |
Valneva SE and OptiNose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and OptiNose
The main advantage of trading using opposite Valneva SE and OptiNose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, OptiNose 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 OptiNose will offset losses from the drop in OptiNose's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
| OptiNose vs. Collegium Pharmaceutical | OptiNose vs. Phibro Animal Health | OptiNose vs. ANI Pharmaceuticals | OptiNose vs. Procaps Group SA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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