Correlation Between Valneva SE and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Valneva SE and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Proficient Auto.
Diversification Opportunities for Valneva SE and Proficient Auto
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Proficient is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Valneva SE i.e., Valneva SE and Proficient Auto go up and down completely randomly.
Pair Corralation between Valneva SE and Proficient Auto
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Proficient Auto. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.04 times less risky than Proficient Auto. The stock trades about -0.49 of its potential returns per unit of risk. The Proficient Auto Logistics, is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Proficient Auto Logistics, on September 1, 2024 and sell it today you would earn a total of 223.00 from holding Proficient Auto Logistics, or generate 27.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Proficient Auto Logistics,
Performance |
| Timeline |
| Valneva SE ADR |
| Proficient Auto Logi |
Valneva SE and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Proficient Auto
The main advantage of trading using opposite Valneva SE and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto'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 |
| Proficient Auto vs. Expeditors International of | Proficient Auto vs. FedEx | Proficient Auto vs. BingEx | Proficient Auto vs. Globavend Holdings Limited |
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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