Correlation Between Valneva SE and Spectral
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Spectral 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 Spectral 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 Spectral AI, you can compare the effects of market volatilities on Valneva SE and Spectral 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 Spectral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Spectral.
Diversification Opportunities for Valneva SE and Spectral
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valneva and Spectral is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Spectral AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectral AI 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 Spectral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectral AI has no effect on the direction of Valneva SE i.e., Valneva SE and Spectral go up and down completely randomly.
Pair Corralation between Valneva SE and Spectral
Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.83 times more return on investment than Spectral. However, Valneva SE ADR is 1.2 times less risky than Spectral. It trades about 0.23 of its potential returns per unit of risk. Spectral AI is currently generating about 0.13 per unit of risk. If you would invest 638.00 in Valneva SE ADR on May 27, 2025 and sell it today you would earn a total of 526.00 from holding Valneva SE ADR or generate 82.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Spectral AI
Performance |
| Timeline |
| Valneva SE ADR |
| Spectral AI |
Valneva SE and Spectral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Spectral
The main advantage of trading using opposite Valneva SE and Spectral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Spectral 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 Spectral will offset losses from the drop in Spectral's long position.| Valneva SE vs. Valneva SE | Valneva SE vs. Tyra Biosciences | Valneva SE vs. Tango Therapeutics | Valneva SE vs. Janux Therapeutics |
| Spectral vs. Two Harbors Investments | Spectral vs. SLR Investment Corp | Spectral vs. PennantPark Investment | Spectral vs. BRP Inc |
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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