Correlation Between Valneva SE and Mobix Labs

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

Diversification Opportunities for Valneva SE and Mobix Labs

0.32

Correlation Coefficient

Valneva SE  Mobix Labs

Weak diversification

The 3 months correlation between Valneva and Mobix is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Mobix Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobix Labs 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 Mobix Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobix Labs has no effect on the direction of Valneva SE i.e., Valneva SE and Mobix Labs go up and down completely randomly.

Pair Corralation between Valneva SE and Mobix Labs

Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Mobix Labs. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 13.37 times less risky than Mobix Labs. The stock trades about -0.04 of its potential returns per unit of risk. The Mobix Labs is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  9.76  in Mobix Labs on October 10, 2024 and sell it today you would earn a total of  3.24  from holding Mobix Labs or generate 33.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	58.35%
Values	Daily Returns

Valneva SE ADR  vs.  Mobix Labs

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.

Mobix Labs

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobix Labs are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Mobix Labs showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Valneva SE and Mobix Labs

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

The idea behind Valneva SE ADR and Mobix Labs 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.