Correlation Between Valneva SE and Selina Hospitality
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Selina Hospitality 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 Selina Hospitality 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 Selina Hospitality PLC, you can compare the effects of market volatilities on Valneva SE and Selina Hospitality 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 Selina Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Selina Hospitality.
Diversification Opportunities for Valneva SE and Selina Hospitality
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valneva and Selina is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Selina Hospitality PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selina Hospitality PLC 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 Selina Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selina Hospitality PLC has no effect on the direction of Valneva SE i.e., Valneva SE and Selina Hospitality go up and down completely randomly.
Pair Corralation between Valneva SE and Selina Hospitality
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Selina Hospitality. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 18.91 times less risky than Selina Hospitality. The stock trades about -0.05 of its potential returns per unit of risk. The Selina Hospitality PLC is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.27 in Selina Hospitality PLC on September 14, 2024 and sell it today you would lose (0.27) from holding Selina Hospitality PLC or give up 21.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.21% |
| Values | Daily Returns |
Valneva SE ADR vs. Selina Hospitality PLC
Performance |
| Timeline |
| Valneva SE ADR |
| Selina Hospitality PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valneva SE and Selina Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Selina Hospitality
The main advantage of trading using opposite Valneva SE and Selina Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Selina Hospitality 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 Selina Hospitality will offset losses from the drop in Selina Hospitality'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 |
| Selina Hospitality vs. Cardinal Health | Selina Hospitality vs. Sun Life Financial | Selina Hospitality vs. Akanda Corp | Selina Hospitality vs. United Airlines 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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