Correlation Between Worldline and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Worldline and Valneva SE 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 Worldline and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worldline SA and Valneva SE, you can compare the effects of market volatilities on Worldline and Valneva SE 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 Worldline with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worldline and Valneva SE.
Diversification Opportunities for Worldline and Valneva SE
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Worldline and Valneva is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Worldline SA and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE and Worldline 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 Worldline SA are associated (or correlated) with Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE has no effect on the direction of Worldline i.e., Worldline and Valneva SE go up and down completely randomly.
Pair Corralation between Worldline and Valneva SE
Assuming the 90 days trading horizon Worldline SA is expected to under-perform the Valneva SE. But the stock apears to be less risky and, when comparing its historical volatility, Worldline SA is 1.0 times less risky than Valneva SE. The stock trades about -0.03 of its potential returns per unit of risk. The Valneva SE is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 229.00 in Valneva SE on November 7, 2024 and sell it today you would earn a total of 35.00 from holding Valneva SE or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Worldline SA vs. Valneva SE
Performance |
| Timeline |
| Worldline SA |
| Valneva SE |
Worldline and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worldline and Valneva SE
The main advantage of trading using opposite Worldline and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worldline position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| Worldline vs. Atos SE | Worldline vs. Teleperformance SE | Worldline vs. Dassault Systemes SE | Worldline vs. Capgemini SE |
| Valneva SE vs. Innate Pharma | Valneva SE vs. DBV Technologies SA | Valneva SE vs. Genfit | Valneva SE vs. Valneva SE ADR |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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