Correlation Between Valneva SE and YTL Berhad
Can any of the company-specific risk be diversified away by investing in both Valneva SE and YTL Berhad 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 YTL Berhad 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 YTL Berhad, you can compare the effects of market volatilities on Valneva SE and YTL Berhad 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 YTL Berhad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and YTL Berhad.
Diversification Opportunities for Valneva SE and YTL Berhad
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Valneva and YTL is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and YTL Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YTL Berhad 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 YTL Berhad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YTL Berhad has no effect on the direction of Valneva SE i.e., Valneva SE and YTL Berhad go up and down completely randomly.
Pair Corralation between Valneva SE and YTL Berhad
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the YTL Berhad. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.04 times less risky than YTL Berhad. The stock trades about -0.05 of its potential returns per unit of risk. The YTL Berhad is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 22.00 in YTL Berhad on September 13, 2024 and sell it today you would earn a total of 24.00 from holding YTL Berhad or generate 109.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. YTL Berhad
Performance |
| Timeline |
| Valneva SE ADR |
| YTL Berhad |
Valneva SE and YTL Berhad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and YTL Berhad
The main advantage of trading using opposite Valneva SE and YTL Berhad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, YTL Berhad 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 YTL Berhad will offset losses from the drop in YTL Berhad'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 |
| YTL Berhad vs. Iridium Communications | YTL Berhad vs. Radcom | YTL Berhad vs. Grupo Televisa SAB | YTL Berhad vs. National Vision Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance |