Correlation Between Valneva SE and Vodka Brands
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Vodka Brands 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 Vodka Brands 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 Vodka Brands Corp, you can compare the effects of market volatilities on Valneva SE and Vodka Brands 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 Vodka Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Vodka Brands.
Diversification Opportunities for Valneva SE and Vodka Brands
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valneva and Vodka is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Vodka Brands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vodka Brands Corp 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 Vodka Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vodka Brands Corp has no effect on the direction of Valneva SE i.e., Valneva SE and Vodka Brands go up and down completely randomly.
Pair Corralation between Valneva SE and Vodka Brands
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Vodka Brands. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 2.34 times less risky than Vodka Brands. The stock trades about -0.05 of its potential returns per unit of risk. The Vodka Brands Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Vodka Brands Corp on August 30, 2024 and sell it today you would lose (88.00) from holding Vodka Brands Corp or give up 44.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Valneva SE ADR vs. Vodka Brands Corp
Performance |
| Timeline |
| Valneva SE ADR |
| Vodka Brands Corp |
Valneva SE and Vodka Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Vodka Brands
The main advantage of trading using opposite Valneva SE and Vodka Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Vodka Brands 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 Vodka Brands will offset losses from the drop in Vodka Brands' long position.| Valneva SE vs. Ikena Oncology | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. RenovoRx |
| Vodka Brands vs. Aristocrat Group Corp | Vodka Brands vs. Naked Wines plc | Vodka Brands vs. Willamette Valley Vineyards | Vodka Brands vs. Andrew Peller Limited |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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