Correlation Between Valneva SE and Beauty Health
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Beauty Health 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 Beauty Health 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 Beauty Health Co, you can compare the effects of market volatilities on Valneva SE and Beauty Health 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 Beauty Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Beauty Health.
Diversification Opportunities for Valneva SE and Beauty Health
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Valneva and Beauty is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Beauty Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beauty Health 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 Beauty Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beauty Health has no effect on the direction of Valneva SE i.e., Valneva SE and Beauty Health go up and down completely randomly.
Pair Corralation between Valneva SE and Beauty Health
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.62 times more return on investment than Beauty Health. However, Valneva SE ADR is 1.6 times less risky than Beauty Health. It trades about -0.01 of its potential returns per unit of risk. Beauty Health Co is currently generating about -0.05 per unit of risk. If you would invest 1,134 in Valneva SE ADR on December 4, 2024 and sell it today you would lose (455.00) from holding Valneva SE ADR or give up 40.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Beauty Health Co
Performance |
| Timeline |
| Valneva SE ADR |
| Beauty Health |
Valneva SE and Beauty Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Beauty Health
The main advantage of trading using opposite Valneva SE and Beauty Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Beauty Health 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 Beauty Health will offset losses from the drop in Beauty Health'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 |
| Beauty Health vs. Clear Secure | ||
| Beauty Health vs. GXO Logistics | ||
| Beauty Health vs. Doximity | ||
| Beauty Health vs. Figs Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |