Correlation Between Valneva SE and Xencor
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Xencor 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 Xencor 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 Xencor Inc, you can compare the effects of market volatilities on Valneva SE and Xencor 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 Xencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Xencor.
Diversification Opportunities for Valneva SE and Xencor
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Xencor is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Xencor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xencor Inc 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 Xencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xencor Inc has no effect on the direction of Valneva SE i.e., Valneva SE and Xencor go up and down completely randomly.
Pair Corralation between Valneva SE and Xencor
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Xencor. In addition to that, Valneva SE is 1.41 times more volatile than Xencor Inc. It trades about -0.63 of its total potential returns per unit of risk. Xencor Inc is currently generating about 0.36 per unit of volatility. If you would invest 2,157 in Xencor Inc on August 28, 2024 and sell it today you would earn a total of 373.00 from holding Xencor Inc or generate 17.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Xencor Inc
Performance |
| Timeline |
| Valneva SE ADR |
| Xencor Inc |
Valneva SE and Xencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Xencor
The main advantage of trading using opposite Valneva SE and Xencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Xencor 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 Xencor will offset losses from the drop in Xencor's long position.| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone Pharmaceuticals | Valneva SE vs. Seres Therapeutics |
| Xencor vs. Edgewise Therapeutics | Xencor vs. Keros Therapeutics | Xencor vs. Monte Rosa Therapeutics | Xencor vs. Mineralys Therapeutics, Common |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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