Correlation Between Valneva SE and Medincell
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Medincell 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 Medincell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valneva SE and Medincell SA, you can compare the effects of market volatilities on Valneva SE and Medincell 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 Medincell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Medincell.
Diversification Opportunities for Valneva SE and Medincell
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valneva and Medincell is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE and Medincell SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medincell 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 Medincell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medincell SA has no effect on the direction of Valneva SE i.e., Valneva SE and Medincell go up and down completely randomly.
Pair Corralation between Valneva SE and Medincell
Assuming the 90 days trading horizon Valneva SE is expected to under-perform the Medincell. In addition to that, Valneva SE is 1.13 times more volatile than Medincell SA. It trades about -0.11 of its total potential returns per unit of risk. Medincell SA is currently generating about 0.13 per unit of volatility. If you would invest 687.00 in Medincell SA on September 4, 2024 and sell it today you would earn a total of 963.00 from holding Medincell SA or generate 140.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE vs. Medincell SA
Performance |
| Timeline |
| Valneva SE |
| Medincell SA |
Valneva SE and Medincell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Medincell
The main advantage of trading using opposite Valneva SE and Medincell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Medincell 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 Medincell will offset losses from the drop in Medincell's long position.| Valneva SE vs. Abivax SA | Valneva SE vs. DBV Technologies SA | Valneva SE vs. Innate Pharma | Valneva SE vs. Transgene SA |
| Medincell vs. Valneva SE | Medincell vs. Abivax SA | Medincell vs. DBV Technologies SA | Medincell vs. Innate Pharma |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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