Correlation Between Valneva SE and SPENN Technology
Can any of the company-specific risk be diversified away by investing in both Valneva SE and SPENN Technology 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 SPENN Technology 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 SPENN Technology AS, you can compare the effects of market volatilities on Valneva SE and SPENN Technology 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 SPENN Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and SPENN Technology.
Diversification Opportunities for Valneva SE and SPENN Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and SPENN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and SPENN Technology AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPENN Technology 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 SPENN Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPENN Technology has no effect on the direction of Valneva SE i.e., Valneva SE and SPENN Technology go up and down completely randomly.
Pair Corralation between Valneva SE and SPENN Technology
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 1.66 times more return on investment than SPENN Technology. However, Valneva SE is 1.66 times more volatile than SPENN Technology AS. It trades about -0.01 of its potential returns per unit of risk. SPENN Technology AS is currently generating about -0.06 per unit of risk. If you would invest 1,198 in Valneva SE ADR on December 1, 2024 and sell it today you would lose (523.00) from holding Valneva SE ADR or give up 43.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
Valneva SE ADR vs. SPENN Technology AS
Performance |
| Timeline |
| Valneva SE ADR |
| SPENN Technology |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Valneva SE and SPENN Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and SPENN Technology
The main advantage of trading using opposite Valneva SE and SPENN Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, SPENN Technology 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 SPENN Technology will offset losses from the drop in SPENN Technology's long position.| Valneva SE vs. NuCana PLC | ||
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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