Correlation Between Valneva SE and NetFlix

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Can any of the company-specific risk be diversified away by investing in both Valneva SE and NetFlix 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 NetFlix 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 NetFlix 4875 percent, you can compare the effects of market volatilities on Valneva SE and NetFlix 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 NetFlix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and NetFlix.

Diversification Opportunities for Valneva SE and NetFlix

ValnevaNetFlixDiversified AwayValnevaNetFlixDiversified Away100%
-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between Valneva and NetFlix is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and NetFlix 4875 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetFlix 4875 percent 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 NetFlix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetFlix 4875 percent has no effect on the direction of Valneva SE i.e., Valneva SE and NetFlix go up and down completely randomly.

Pair Corralation between Valneva SE and NetFlix

Given the investment horizon of 90 days Valneva SE ADR is expected to generate 31.69 times more return on investment than NetFlix. However, Valneva SE is 31.69 times more volatile than NetFlix 4875 percent. It trades about 0.3 of its potential returns per unit of risk. NetFlix 4875 percent is currently generating about 0.09 per unit of risk. If you would invest  485.00  in Valneva SE ADR on November 27, 2024 and sell it today you would earn a total of  256.00  from holding Valneva SE ADR or generate 52.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Valneva SE ADR  vs.  NetFlix 4875 percent

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -200204060
JavaScript chart by amCharts 3.21.15VALN 64110LAV8
       Timeline  
Valneva SE ADR 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Valneva SE ADR are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Valneva SE displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb45678
NetFlix 4875 percent 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days NetFlix 4875 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NetFlix is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb98.59999.5100100.5101

Valneva SE and NetFlix Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-17.12-12.82-8.52-4.230.04.529.1913.8618.5423.21 1234
JavaScript chart by amCharts 3.21.15VALN 64110LAV8
       Returns  

Pair Trading with Valneva SE and NetFlix

The main advantage of trading using opposite Valneva SE and NetFlix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, NetFlix 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 NetFlix will offset losses from the drop in NetFlix's long position.
The idea behind Valneva SE ADR and NetFlix 4875 percent pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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