Correlation Between Valneva SE and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Agilent Technologies 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 Agilent Technologies 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 Agilent Technologies, you can compare the effects of market volatilities on Valneva SE and Agilent Technologies 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 Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Agilent Technologies.
Diversification Opportunities for Valneva SE and Agilent Technologies
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valneva and Agilent is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies 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 Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of Valneva SE i.e., Valneva SE and Agilent Technologies go up and down completely randomly.
Pair Corralation between Valneva SE and Agilent Technologies
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 2.47 times more return on investment than Agilent Technologies. However, Valneva SE is 2.47 times more volatile than Agilent Technologies. It trades about 0.01 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.15 per unit of risk. If you would invest 768.00 in Valneva SE ADR on January 29, 2024 and sell it today you would lose (4.00) from holding Valneva SE ADR or give up 0.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Valneva SE ADR vs. Agilent Technologies
Performance |
Timeline |
Valneva SE ADR |
Agilent Technologies |
Valneva SE and Agilent Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Valneva SE and Agilent Technologies
The main advantage of trading using opposite Valneva SE and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
Agilent Technologies vs. Molecular Partners AG | Agilent Technologies vs. MediciNova | Agilent Technologies vs. Anebulo Pharmaceuticals | Agilent Technologies vs. Eliem Therapeutics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
CEOs Directory Screen CEOs from public companies around the world |