Correlation Between Valneva SE and Exicure

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

Diversification Opportunities for Valneva SE and Exicure

-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Valneva and Exicure is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Valneva SE i.e., Valneva SE and Exicure go up and down completely randomly.

Pair Corralation between Valneva SE and Exicure

Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Valneva SE ADR is 8.31 times less risky than Exicure. The stock trades about -0.3 of its potential returns per unit of risk. The Exicure is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  174.00  in Exicure on September 6, 2024 and sell it today you would earn a total of  1,978  from holding Exicure or generate 1136.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Valneva SE ADR  vs.  Exicure

 Performance 
       Timeline  
Valneva SE ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
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 conflicting performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Exicure 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Exicure are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Exicure reported solid returns over the last few months and may actually be approaching a breakup point.

Valneva SE and Exicure Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Valneva SE and Exicure

The main advantage of trading using opposite Valneva SE and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.
The idea behind Valneva SE ADR and Exicure 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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