Correlation Between Valneva SE and Pulmatrix
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Pulmatrix 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 Pulmatrix 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 Pulmatrix, you can compare the effects of market volatilities on Valneva SE and Pulmatrix 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 Pulmatrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Pulmatrix.
Diversification Opportunities for Valneva SE and Pulmatrix
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Pulmatrix is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix 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 Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of Valneva SE i.e., Valneva SE and Pulmatrix go up and down completely randomly.
Pair Corralation between Valneva SE and Pulmatrix
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Pulmatrix. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 6.43 times less risky than Pulmatrix. The stock trades about -0.49 of its potential returns per unit of risk. The Pulmatrix is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Pulmatrix on September 1, 2024 and sell it today you would earn a total of 444.00 from holding Pulmatrix or generate 201.82% 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. Pulmatrix
Performance |
| Timeline |
| Valneva SE ADR |
| Pulmatrix |
Valneva SE and Pulmatrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Pulmatrix
The main advantage of trading using opposite Valneva SE and Pulmatrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Pulmatrix 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 Pulmatrix will offset losses from the drop in Pulmatrix'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 |
| Pulmatrix vs. Capricor Therapeutics | Pulmatrix vs. Akari Therapeutics PLC | Pulmatrix vs. Soleno Therapeutics | Pulmatrix vs. Bio Path Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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