Correlation Between Valneva SE and Abivax SA
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Abivax SA 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 Abivax SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valneva SE and Abivax SA, you can compare the effects of market volatilities on Valneva SE and Abivax SA 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 Abivax SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Abivax SA.
Diversification Opportunities for Valneva SE and Abivax SA
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Abivax is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE and Abivax SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abivax SA 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 are associated (or correlated) with Abivax SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abivax SA has no effect on the direction of Valneva SE i.e., Valneva SE and Abivax SA go up and down completely randomly.
Pair Corralation between Valneva SE and Abivax SA
Assuming the 90 days trading horizon Valneva SE is expected to under-perform the Abivax SA. In addition to that, Valneva SE is 1.18 times more volatile than Abivax SA. It trades about -0.11 of its total potential returns per unit of risk. Abivax SA is currently generating about -0.02 per unit of volatility. If you would invest 951.00 in Abivax SA on September 4, 2024 and sell it today you would lose (185.00) from holding Abivax SA or give up 19.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE vs. Abivax SA
Performance |
| Timeline |
| Valneva SE |
| Abivax SA |
Valneva SE and Abivax SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Abivax SA
The main advantage of trading using opposite Valneva SE and Abivax SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Abivax SA 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 Abivax SA will offset losses from the drop in Abivax SA's long position.| Valneva SE vs. Abivax SA | Valneva SE vs. DBV Technologies SA | Valneva SE vs. Innate Pharma | Valneva SE vs. Transgene SA |
| Abivax SA vs. Gensight Biologics SA | Abivax SA vs. Innate Pharma | Abivax SA vs. Poxel SA | Abivax SA vs. Nanobiotix SA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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