Correlation Between Valneva SE and Acco Brands

Can any of the company-specific risk be diversified away by investing in both Valneva SE and Acco Brands 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 Acco Brands 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 Acco Brands, you can compare the effects of market volatilities on Valneva SE and Acco Brands 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 Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Acco Brands.

Diversification Opportunities for Valneva SE and Acco Brands

-0.79

Correlation Coefficient

Valneva SE  Acco Brands

Pay attention - limited upside

The 3 months correlation between Valneva and Acco is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands 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 Acco Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acco Brands has no effect on the direction of Valneva SE i.e., Valneva SE and Acco Brands go up and down completely randomly.

Pair Corralation between Valneva SE and Acco Brands

Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Acco Brands. In addition to that, Valneva SE is 1.48 times more volatile than Acco Brands. It trades about -0.2 of its total potential returns per unit of risk. Acco Brands is currently generating about 0.06 per unit of volatility. If you would invest  577.00  in Acco Brands on September 17, 2024 and sell it today you would earn a total of  12.00  from holding Acco Brands or generate 2.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Valneva SE ADR  vs.  Acco Brands

Valneva SE ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Valneva SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Acco Brands

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Acco Brands are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Acco Brands displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Valneva SE and Acco Brands

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

The idea behind Valneva SE ADR and Acco Brands 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.