Correlation Between Valneva SE and Pingtan Marine
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Pingtan Marine 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 Pingtan Marine 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 Pingtan Marine Enterprise, you can compare the effects of market volatilities on Valneva SE and Pingtan Marine 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 Pingtan Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Pingtan Marine.
Diversification Opportunities for Valneva SE and Pingtan Marine
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Valneva and Pingtan is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Pingtan Marine Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pingtan Marine Enterprise 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 Pingtan Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pingtan Marine Enterprise has no effect on the direction of Valneva SE i.e., Valneva SE and Pingtan Marine go up and down completely randomly.
Pair Corralation between Valneva SE and Pingtan Marine
If you would invest 431.00 in Valneva SE ADR on October 10, 2024 and sell it today you would earn a total of 35.00 from holding Valneva SE ADR or generate 8.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 5.0% |
Values | Daily Returns |
Valneva SE ADR vs. Pingtan Marine Enterprise
Performance |
Timeline |
Valneva SE ADR |
Pingtan Marine Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valneva SE and Pingtan Marine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Valneva SE and Pingtan Marine
The main advantage of trading using opposite Valneva SE and Pingtan Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Pingtan Marine 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 Pingtan Marine will offset losses from the drop in Pingtan Marine's long position.Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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