Correlation Between Valneva SE and Pingtan Marine

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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 Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy5.0%
ValuesDaily Returns

Valneva SE ADR  vs.  Pingtan Marine Enterprise

 Performance 
       Timeline  
Valneva SE ADR 

Risk-Adjusted Performance

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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.
Pingtan Marine Enterprise 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Pingtan Marine Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Pingtan Marine is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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.
The idea behind Valneva SE ADR and Pingtan Marine Enterprise 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.
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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