Correlation Between Valneva SE and Scisparc
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Scisparc 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 Scisparc 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 Scisparc, you can compare the effects of market volatilities on Valneva SE and Scisparc 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 Scisparc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Scisparc.
Diversification Opportunities for Valneva SE and Scisparc
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Scisparc is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc 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 Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of Valneva SE i.e., Valneva SE and Scisparc go up and down completely randomly.
Pair Corralation between Valneva SE and Scisparc
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Scisparc. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 2.27 times less risky than Scisparc. The stock trades about -0.41 of its potential returns per unit of risk. The Scisparc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Scisparc on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Scisparc or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Scisparc
Performance |
| Timeline |
| Valneva SE ADR |
| Scisparc |
Valneva SE and Scisparc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Scisparc
The main advantage of trading using opposite Valneva SE and Scisparc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Scisparc 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 Scisparc will offset losses from the drop in Scisparc's long position.| Valneva SE vs. Lyra Therapeutics | Valneva SE vs. Hookipa Pharma | Valneva SE vs. Cingulate Warrants | Valneva SE vs. SAB Biotherapeutics |
| Scisparc vs. Virax Biolabs Group | Scisparc vs. ZyVersa Therapeutics | Scisparc vs. Unicycive Therapeutics | Scisparc vs. Quoin Pharmaceuticals Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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