Correlation Between Grupo Simec and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Grupo Simec 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 Grupo Simec and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Simec SAB and Valneva SE ADR, you can compare the effects of market volatilities on Grupo Simec 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 Grupo Simec with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Valneva SE.
Diversification Opportunities for Grupo Simec and Valneva SE
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Valneva is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR and Grupo Simec 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 Grupo Simec SAB 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 ADR has no effect on the direction of Grupo Simec i.e., Grupo Simec and Valneva SE go up and down completely randomly.
Pair Corralation between Grupo Simec and Valneva SE
Considering the 90-day investment horizon Grupo Simec SAB is expected to generate 0.85 times more return on investment than Valneva SE. However, Grupo Simec SAB is 1.17 times less risky than Valneva SE. It trades about -0.02 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.03 per unit of risk. If you would invest 3,578 in Grupo Simec SAB on December 5, 2024 and sell it today you would lose (1,029) from holding Grupo Simec SAB or give up 28.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 84.87% |
Values | Daily Returns |
Grupo Simec SAB vs. Valneva SE ADR
Performance |
Timeline |
Grupo Simec SAB |
Valneva SE ADR |
Grupo Simec and Valneva SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Simec and Valneva SE
The main advantage of trading using opposite Grupo Simec and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec 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.Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |