Correlation Between Valneva SE and EXACT Sciences

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Can any of the company-specific risk be diversified away by investing in both Valneva SE and EXACT Sciences 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 EXACT Sciences 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 EXACT Sciences, you can compare the effects of market volatilities on Valneva SE and EXACT Sciences 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 EXACT Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and EXACT Sciences.

Diversification Opportunities for Valneva SE and EXACT Sciences

-0.68
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Valneva and EXACT is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and EXACT Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXACT Sciences 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 EXACT Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXACT Sciences has no effect on the direction of Valneva SE i.e., Valneva SE and EXACT Sciences go up and down completely randomly.

Pair Corralation between Valneva SE and EXACT Sciences

Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the EXACT Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 1.39 times less risky than EXACT Sciences. The stock trades about -0.01 of its potential returns per unit of risk. The EXACT Sciences is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  5,834  in EXACT Sciences on October 10, 2025 and sell it today you would earn a total of  4,329  from holding EXACT Sciences or generate 74.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Valneva SE ADR  vs.  EXACT Sciences

 Performance 
       Timeline  
Valneva SE ADR 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 very healthy essential indicators, Valneva SE is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
EXACT Sciences 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in EXACT Sciences are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, EXACT Sciences unveiled solid returns over the last few months and may actually be approaching a breakup point.

Valneva SE and EXACT Sciences Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Valneva SE and EXACT Sciences

The main advantage of trading using opposite Valneva SE and EXACT Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, EXACT Sciences 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 EXACT Sciences will offset losses from the drop in EXACT Sciences' long position.
The idea behind Valneva SE ADR and EXACT Sciences 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.
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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