Correlation Between Valneva SE and Fiserv,

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

Diversification Opportunities for Valneva SE and Fiserv,

-0.63

Correlation Coefficient

Valneva SE  Fiserv,

Excellent diversification

The 3 months correlation between Valneva and Fiserv, is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Fiserv, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv, 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 Fiserv,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv, has no effect on the direction of Valneva SE i.e., Valneva SE and Fiserv, go up and down completely randomly.

Pair Corralation between Valneva SE and Fiserv,

Given the investment horizon of 90 days Valneva SE ADR is expected to generate 5.84 times more return on investment than Fiserv,. However, Valneva SE is 5.84 times more volatile than Fiserv,. It trades about 0.11 of its potential returns per unit of risk. Fiserv, is currently generating about 0.08 per unit of risk. If you would invest  431.00  in Valneva SE ADR on October 9, 2024 and sell it today you would earn a total of  38.00  from holding Valneva SE ADR or generate 8.82% 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.  Fiserv,

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 uncertain performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Fiserv,

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fiserv, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Fiserv, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Valneva SE and Fiserv,

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

The idea behind Valneva SE ADR and Fiserv, 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.