Correlation Between Valneva SE and APPLE
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By analyzing existing cross correlation between Valneva SE ADR and APPLE INC, you can compare the effects of market volatilities on Valneva SE and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and APPLE.
Diversification Opportunities for Valneva SE and APPLE
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Valneva and APPLE is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC has no effect on the direction of Valneva SE i.e., Valneva SE and APPLE go up and down completely randomly.
Pair Corralation between Valneva SE and APPLE
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the APPLE. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.0 times less risky than APPLE. The stock trades about -0.58 of its potential returns per unit of risk. The APPLE INC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 6,212 in APPLE INC on August 28, 2024 and sell it today you would earn a total of 807.00 from holding APPLE INC or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Valneva SE ADR vs. APPLE INC
Performance |
| Timeline |
| Valneva SE ADR |
| APPLE INC |
Valneva SE and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and APPLE
The main advantage of trading using opposite Valneva SE and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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