Correlation Between Valneva SE and STATE
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By analyzing existing cross correlation between Valneva SE ADR and STATE STREET P, you can compare the effects of market volatilities on Valneva SE and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and STATE.
Diversification Opportunities for Valneva SE and STATE
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and STATE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET P 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of Valneva SE i.e., Valneva SE and STATE go up and down completely randomly.
Pair Corralation between Valneva SE and STATE
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the STATE. In addition to that, Valneva SE is 2.85 times more volatile than STATE STREET P. It trades about -0.24 of its total potential returns per unit of risk. STATE STREET P is currently generating about -0.15 per unit of volatility. If you would invest 8,934 in STATE STREET P on September 12, 2024 and sell it today you would lose (358.00) from holding STATE STREET P or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. STATE STREET P
Performance |
| Timeline |
| Valneva SE ADR |
| STATE STREET P |
Valneva SE and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and STATE
The main advantage of trading using opposite Valneva SE and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE'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 |
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 Stocks Directory module to find actively traded stocks across global markets.
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