Correlation Between Valneva SE and Aditxt
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Aditxt 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 Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valneva SE ADR and Aditxt Inc, you can compare the effects of market volatilities on Valneva SE and Aditxt 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 Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Aditxt.
Diversification Opportunities for Valneva SE and Aditxt
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Valneva and Aditxt is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc 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 ADR are associated (or correlated) with Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of Valneva SE i.e., Valneva SE and Aditxt go up and down completely randomly.
Pair Corralation between Valneva SE and Aditxt
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Aditxt. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 7.55 times less risky than Aditxt. The stock trades about -0.02 of its potential returns per unit of risk. The Aditxt Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,520 in Aditxt Inc on January 24, 2024 and sell it today you would lose (4,298) from holding Aditxt Inc or give up 95.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Valneva SE ADR vs. Aditxt Inc
Performance |
Timeline |
Valneva SE ADR |
Aditxt Inc |
Valneva SE and Aditxt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Valneva SE and Aditxt
The main advantage of trading using opposite Valneva SE and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Aditxt 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 Aditxt will offset losses from the drop in Aditxt's long position.Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
Aditxt vs. Neurobo Pharmaceuticals | Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |