Correlation Between Valeo SE and BKV
Can any of the company-specific risk be diversified away by investing in both Valeo SE and BKV 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 Valeo SE and BKV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valeo SE and BKV Corporation, you can compare the effects of market volatilities on Valeo SE and BKV 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 Valeo SE with a short position of BKV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valeo SE and BKV.
Diversification Opportunities for Valeo SE and BKV
Very good diversification
The 3 months correlation between Valeo and BKV is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Valeo SE and BKV Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKV Corporation and Valeo 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 Valeo SE are associated (or correlated) with BKV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKV Corporation has no effect on the direction of Valeo SE i.e., Valeo SE and BKV go up and down completely randomly.
Pair Corralation between Valeo SE and BKV
Assuming the 90 days horizon Valeo SE is expected to generate 0.6 times more return on investment than BKV. However, Valeo SE is 1.66 times less risky than BKV. It trades about -0.22 of its potential returns per unit of risk. BKV Corporation is currently generating about -0.57 per unit of risk. If you would invest 1,140 in Valeo SE on December 11, 2024 and sell it today you would lose (80.00) from holding Valeo SE or give up 7.02% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Valeo SE vs. BKV Corp.
Performance |
Timeline |
Valeo SE |
BKV Corporation |
Valeo SE and BKV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Valeo SE and BKV
The main advantage of trading using opposite Valeo SE and BKV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valeo SE position performs unexpectedly, BKV 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 BKV will offset losses from the drop in BKV's long position.Valeo SE vs. Innoviz Technologies | Valeo SE vs. Miller Industries | Valeo SE vs. Dana Inc | Valeo SE vs. LKQ Corporation |
BKV vs. The Wendys Co | BKV vs. Dine Brands Global | BKV vs. GEN Restaurant Group, | BKV vs. Regeneron Pharmaceuticals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |