Correlation Between Valneva SE and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Valneva SE and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Uber Technologies.
Diversification Opportunities for Valneva SE and Uber Technologies
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Uber is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Valneva SE i.e., Valneva SE and Uber Technologies go up and down completely randomly.
Pair Corralation between Valneva SE and Uber Technologies
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 1.63 times more return on investment than Uber Technologies. However, Valneva SE is 1.63 times more volatile than Uber Technologies. It trades about 0.23 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.18 per unit of risk. If you would invest 472.00 in Valneva SE ADR on November 2, 2024 and sell it today you would earn a total of 53.00 from holding Valneva SE ADR or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Uber Technologies
Performance |
| Timeline |
| Valneva SE ADR |
| Uber Technologies |
Valneva SE and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Uber Technologies
The main advantage of trading using opposite Valneva SE and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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