Correlation Between Valneva SE and Seer
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Seer 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 Seer 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 Seer Inc, you can compare the effects of market volatilities on Valneva SE and Seer 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 Seer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Seer.
Diversification Opportunities for Valneva SE and Seer
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Seer is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Seer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seer Inc 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 Seer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seer Inc has no effect on the direction of Valneva SE i.e., Valneva SE and Seer go up and down completely randomly.
Pair Corralation between Valneva SE and Seer
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Seer. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.22 times less risky than Seer. The stock trades about -0.63 of its potential returns per unit of risk. The Seer Inc is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 194.00 in Seer Inc on August 29, 2024 and sell it today you would earn a total of 54.00 from holding Seer Inc or generate 27.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Seer Inc
Performance |
| Timeline |
| Valneva SE ADR |
| Seer Inc |
Valneva SE and Seer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Seer
The main advantage of trading using opposite Valneva SE and Seer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Seer 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 Seer will offset losses from the drop in Seer's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals | Valneva SE vs. Seres Therapeutics |
| Seer vs. Oric Pharmaceuticals | Seer vs. Anebulo Pharmaceuticals | Seer vs. Cullinan Oncology LLC | Seer vs. C4 Therapeutics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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