Correlation Between Valneva SE and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Anheuser Busch 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 Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valneva SE and Anheuser Busch InBev SANV, you can compare the effects of market volatilities on Valneva SE and Anheuser Busch 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 Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Anheuser Busch.
Diversification Opportunities for Valneva SE and Anheuser Busch
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Valneva and Anheuser is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE and Anheuser Busch InBev SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch InBev 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 Anheuser Busch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anheuser Busch InBev has no effect on the direction of Valneva SE i.e., Valneva SE and Anheuser Busch go up and down completely randomly.
Pair Corralation between Valneva SE and Anheuser Busch
Assuming the 90 days trading horizon Valneva SE is expected to under-perform the Anheuser Busch. In addition to that, Valneva SE is 1.69 times more volatile than Anheuser Busch InBev SANV. It trades about -0.41 of its total potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about -0.31 per unit of volatility. If you would invest 5,960 in Anheuser Busch InBev SANV on August 26, 2024 and sell it today you would lose (710.00) from holding Anheuser Busch InBev SANV or give up 11.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE vs. Anheuser Busch InBev SANV
Performance |
| Timeline |
| Valneva SE |
| Anheuser Busch InBev |
Valneva SE and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Anheuser Busch
The main advantage of trading using opposite Valneva SE and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Anheuser Busch 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 Anheuser Busch will offset losses from the drop in Anheuser Busch's long position.| Valneva SE vs. BKS Bank AG | Valneva SE vs. UNIQA Insurance Group | Valneva SE vs. CNH Industrial NV | Valneva SE vs. Vienna Insurance Group |
| Anheuser Busch vs. RATH Aktiengesellschaft | Anheuser Busch vs. Semperit Aktiengesellschaft Holding | Anheuser Busch vs. Oesterr Post AG | Anheuser Busch vs. Voestalpine AG |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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