Correlation Between Valneva SE and Emergent Biosolutions
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Emergent Biosolutions 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 Emergent Biosolutions 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 Emergent Biosolutions, you can compare the effects of market volatilities on Valneva SE and Emergent Biosolutions 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 Emergent Biosolutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Emergent Biosolutions.
Diversification Opportunities for Valneva SE and Emergent Biosolutions
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valneva and Emergent is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Emergent Biosolutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emergent Biosolutions 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 Emergent Biosolutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emergent Biosolutions has no effect on the direction of Valneva SE i.e., Valneva SE and Emergent Biosolutions go up and down completely randomly.
Pair Corralation between Valneva SE and Emergent Biosolutions
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 1.01 times more return on investment than Emergent Biosolutions. However, Valneva SE is 1.01 times more volatile than Emergent Biosolutions. It trades about 0.15 of its potential returns per unit of risk. Emergent Biosolutions is currently generating about 0.1 per unit of risk. If you would invest 635.00 in Valneva SE ADR on July 20, 2025 and sell it today you would earn a total of 369.00 from holding Valneva SE ADR or generate 58.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Emergent Biosolutions
Performance |
| Timeline |
| Valneva SE ADR |
| Emergent Biosolutions |
Valneva SE and Emergent Biosolutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Emergent Biosolutions
The main advantage of trading using opposite Valneva SE and Emergent Biosolutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Emergent Biosolutions 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 Emergent Biosolutions will offset losses from the drop in Emergent Biosolutions' long position.| Valneva SE vs. Geron | Valneva SE vs. Rezolute | Valneva SE vs. ArriVent BioPharma, Common | Valneva SE vs. Eyepoint Pharmaceuticals |
| Emergent Biosolutions vs. Organogenesis Holdings | Emergent Biosolutions vs. Esperion Therapeutics | Emergent Biosolutions vs. Rigel Pharmaceuticals | Emergent Biosolutions vs. SIGA Technologies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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