Correlation Between Valneva SE and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Spyre Therapeutics 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 Spyre Therapeutics 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 Spyre Therapeutics, you can compare the effects of market volatilities on Valneva SE and Spyre Therapeutics 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 Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Spyre Therapeutics.
Diversification Opportunities for Valneva SE and Spyre Therapeutics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valneva and Spyre is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics 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 Spyre Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spyre Therapeutics has no effect on the direction of Valneva SE i.e., Valneva SE and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Valneva SE and Spyre Therapeutics
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Spyre Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.41 times less risky than Spyre Therapeutics. The stock trades about -0.61 of its potential returns per unit of risk. The Spyre Therapeutics is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 3,380 in Spyre Therapeutics on August 30, 2024 and sell it today you would lose (605.00) from holding Spyre Therapeutics or give up 17.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Spyre Therapeutics
Performance |
| Timeline |
| Valneva SE ADR |
| Spyre Therapeutics |
Valneva SE and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Spyre Therapeutics
The main advantage of trading using opposite Valneva SE and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Spyre Therapeutics 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 Spyre Therapeutics will offset losses from the drop in Spyre Therapeutics' long position.| Valneva SE vs. Ikena Oncology | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. RenovoRx |
| Spyre Therapeutics vs. Ikena Oncology | Spyre Therapeutics vs. Eliem Therapeutics | Spyre Therapeutics vs. HCW Biologics | Spyre Therapeutics vs. RenovoRx |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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