Correlation Between Valneva SE and Lexeo Therapeutics,

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

Diversification Opportunities for Valneva SE and Lexeo Therapeutics,

0.76

Correlation Coefficient

Valneva SE  Lexeo Therapeutics,

Poor diversification

The 3 months correlation between Valneva and Lexeo is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Lexeo Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexeo Therapeutics, 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 Lexeo Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexeo Therapeutics, has no effect on the direction of Valneva SE i.e., Valneva SE and Lexeo Therapeutics, go up and down completely randomly.

Pair Corralation between Valneva SE and Lexeo Therapeutics,

Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Lexeo Therapeutics,. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.74 times less risky than Lexeo Therapeutics,. The stock trades about -0.1 of its potential returns per unit of risk. The Lexeo Therapeutics, Common is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,100  in Lexeo Therapeutics, Common on September 12, 2024 and sell it today you would lose (264.00) from holding Lexeo Therapeutics, Common or give up 24.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	74.53%
Values	Daily Returns

Valneva SE ADR  vs.  Lexeo Therapeutics, Common

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 January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Lexeo Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lexeo Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Lexeo Therapeutics, is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Valneva SE and Lexeo Therapeutics,

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

The idea behind Valneva SE ADR and Lexeo Therapeutics, Common 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.