Correlation Between Valneva SE and AMERICAN
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By analyzing existing cross correlation between Valneva SE ADR and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on Valneva SE and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and AMERICAN.
Diversification Opportunities for Valneva SE and AMERICAN
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and AMERICAN is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Valneva SE i.e., Valneva SE and AMERICAN go up and down completely randomly.
Pair Corralation between Valneva SE and AMERICAN
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the AMERICAN. In addition to that, Valneva SE is 7.44 times more volatile than AMERICAN EXPRESS CR. It trades about -0.11 of its total potential returns per unit of risk. AMERICAN EXPRESS CR is currently generating about 0.03 per unit of volatility. If you would invest 9,418 in AMERICAN EXPRESS CR on September 3, 2024 and sell it today you would earn a total of 300.00 from holding AMERICAN EXPRESS CR or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Valneva SE ADR vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| Valneva SE ADR |
| AMERICAN EXPRESS |
Valneva SE and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and AMERICAN
The main advantage of trading using opposite Valneva SE and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN'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 |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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