Correlation Between Valneva SE and Willamette Valley
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Willamette Valley 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 Willamette Valley 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 Willamette Valley Vineyards, you can compare the effects of market volatilities on Valneva SE and Willamette Valley 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 Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Willamette Valley.
Diversification Opportunities for Valneva SE and Willamette Valley
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Willamette is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley 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 Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of Valneva SE i.e., Valneva SE and Willamette Valley go up and down completely randomly.
Pair Corralation between Valneva SE and Willamette Valley
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Willamette Valley. In addition to that, Valneva SE is 1.47 times more volatile than Willamette Valley Vineyards. It trades about -0.1 of its total potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.07 per unit of volatility. If you would invest 523.00 in Willamette Valley Vineyards on August 27, 2024 and sell it today you would lose (192.00) from holding Willamette Valley Vineyards or give up 36.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Willamette Valley Vineyards
Performance |
| Timeline |
| Valneva SE ADR |
| Willamette Valley |
Valneva SE and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Willamette Valley
The main advantage of trading using opposite Valneva SE and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals |
| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |