Correlation Between Valneva SE and Vaccinex
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Vaccinex 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 Vaccinex 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 Vaccinex, you can compare the effects of market volatilities on Valneva SE and Vaccinex 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 Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Vaccinex.
Diversification Opportunities for Valneva SE and Vaccinex
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Valneva and Vaccinex is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex 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 Vaccinex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaccinex has no effect on the direction of Valneva SE i.e., Valneva SE and Vaccinex go up and down completely randomly.
Pair Corralation between Valneva SE and Vaccinex
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Vaccinex. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 3.03 times less risky than Vaccinex. The stock trades about -0.62 of its potential returns per unit of risk. The Vaccinex is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Vaccinex on August 30, 2024 and sell it today you would lose (10.00) from holding Vaccinex or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Vaccinex
Performance |
| Timeline |
| Valneva SE ADR |
| Vaccinex |
Valneva SE and Vaccinex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Vaccinex
The main advantage of trading using opposite Valneva SE and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Vaccinex 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 Vaccinex will offset losses from the drop in Vaccinex's long position.| Valneva SE vs. Ikena Oncology | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. RenovoRx |
| Vaccinex vs. Protara Therapeutics | Vaccinex vs. Monopar Therapeutics | Vaccinex vs. Surrozen | Vaccinex vs. Salarius 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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