Correlation Between Valneva SE and Universal Music
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Universal Music 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 Universal Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valneva SE and Universal Music Group, you can compare the effects of market volatilities on Valneva SE and Universal Music 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 Universal Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Universal Music.
Diversification Opportunities for Valneva SE and Universal Music
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Valneva and Universal is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE and Universal Music Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Music Group 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 Universal Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Music Group has no effect on the direction of Valneva SE i.e., Valneva SE and Universal Music go up and down completely randomly.
Pair Corralation between Valneva SE and Universal Music
Assuming the 90 days trading horizon Valneva SE is expected to under-perform the Universal Music. In addition to that, Valneva SE is 1.96 times more volatile than Universal Music Group. It trades about -0.41 of its total potential returns per unit of risk. Universal Music Group is currently generating about -0.13 per unit of volatility. If you would invest 2,359 in Universal Music Group on August 26, 2024 and sell it today you would lose (105.00) from holding Universal Music Group or give up 4.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE vs. Universal Music Group
Performance |
| Timeline |
| Valneva SE |
| Universal Music Group |
Valneva SE and Universal Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Universal Music
The main advantage of trading using opposite Valneva SE and Universal Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Universal Music 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 Universal Music will offset losses from the drop in Universal Music'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 |
| Universal Music vs. AMAG Austria Metall | Universal Music vs. Erste Group Bank | Universal Music vs. Wiener Privatbank SE | Universal Music vs. Oberbank 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |