Correlation Between Valbiotis SAS and Kalray SA

Can any of the company-specific risk be diversified away by investing in both Valbiotis SAS and Kalray SA 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 Valbiotis SAS and Kalray SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Valbiotis SAS and Kalray SA, you can compare the effects of market volatilities on Valbiotis SAS and Kalray SA 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 Valbiotis SAS with a short position of Kalray SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valbiotis SAS and Kalray SA.

Diversification Opportunities for Valbiotis SAS and Kalray SA

-0.01

Correlation Coefficient

Valbiotis SAS  Kalray SA

Good diversification

The 3 months correlation between Valbiotis and Kalray is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Valbiotis SAS and Kalray SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalray SA and Valbiotis SAS 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 Valbiotis SAS are associated (or correlated) with Kalray SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalray SA has no effect on the direction of Valbiotis SAS i.e., Valbiotis SAS and Kalray SA go up and down completely randomly.

Pair Corralation between Valbiotis SAS and Kalray SA

Assuming the 90 days trading horizon Valbiotis SAS is expected to generate 0.22 times more return on investment than Kalray SA. However, Valbiotis SAS is 4.51 times less risky than Kalray SA. It trades about 0.04 of its potential returns per unit of risk. Kalray SA is currently generating about -0.01 per unit of risk. If you would invest  133.00  in Valbiotis SAS on September 26, 2024 and sell it today you would earn a total of  6.00  from holding Valbiotis SAS or generate 4.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Valbiotis SAS  vs.  Kalray SA

Valbiotis SAS

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Valbiotis SAS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Valbiotis SAS may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Kalray SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kalray SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Valbiotis SAS and Kalray SA

The main advantage of trading using opposite Valbiotis SAS and Kalray SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valbiotis SAS position performs unexpectedly, Kalray SA 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 Kalray SA will offset losses from the drop in Kalray SA's long position.

The idea behind Valbiotis SAS and Kalray SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.