Correlation Between Valneva SE and Safety Shot
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Safety Shot 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 Safety Shot 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 Safety Shot, you can compare the effects of market volatilities on Valneva SE and Safety Shot 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 Safety Shot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Safety Shot.
Diversification Opportunities for Valneva SE and Safety Shot
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Valneva and Safety is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Safety Shot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Shot 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 Safety Shot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Shot has no effect on the direction of Valneva SE i.e., Valneva SE and Safety Shot go up and down completely randomly.
Pair Corralation between Valneva SE and Safety Shot
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Safety Shot. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.74 times less risky than Safety Shot. The stock trades about -0.53 of its potential returns per unit of risk. The Safety Shot is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Safety Shot on September 2, 2024 and sell it today you would lose (12.00) from holding Safety Shot or give up 11.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Safety Shot
Performance |
| Timeline |
| Valneva SE ADR |
| Safety Shot |
Valneva SE and Safety Shot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Safety Shot
The main advantage of trading using opposite Valneva SE and Safety Shot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Safety Shot 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 Safety Shot will offset losses from the drop in Safety Shot's long position.| Valneva SE vs. Tff Pharmaceuticals | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Inhibrx | Valneva SE vs. Enliven Therapeutics |
| Safety Shot vs. Regeneron Pharmaceuticals | Safety Shot vs. Bright Scholar Education | Safety Shot vs. Valneva SE ADR | Safety Shot vs. Mink 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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