Correlation Between Valneva SE and Equillium
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Equillium 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 Equillium 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 Equillium, you can compare the effects of market volatilities on Valneva SE and Equillium 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 Equillium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Equillium.
Diversification Opportunities for Valneva SE and Equillium
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valneva and Equillium is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Equillium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equillium 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 Equillium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equillium has no effect on the direction of Valneva SE i.e., Valneva SE and Equillium go up and down completely randomly.
Pair Corralation between Valneva SE and Equillium
Given the investment horizon of 90 days Valneva SE is expected to generate 4.7 times less return on investment than Equillium. But when comparing it to its historical volatility, Valneva SE ADR is 2.65 times less risky than Equillium. It trades about 0.16 of its potential returns per unit of risk. Equillium is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Equillium on June 2, 2025 and sell it today you would earn a total of 103.00 from holding Equillium or generate 145.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Equillium
Performance |
| Timeline |
| Valneva SE ADR |
| Equillium |
Valneva SE and Equillium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Equillium
The main advantage of trading using opposite Valneva SE and Equillium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Equillium 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 Equillium will offset losses from the drop in Equillium's long position.| Valneva SE vs. Valneva SE | Valneva SE vs. Tyra Biosciences | Valneva SE vs. Tango Therapeutics | Valneva SE vs. Janux Therapeutics |
| Equillium vs. Applied Therapeutics | Equillium vs. Cingulate | Equillium vs. Corvus Pharmaceuticals | Equillium vs. Electrocore LLC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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