Correlation Between Sage Therapeutics and Valneva SE

Can any of the company-specific risk be diversified away by investing in both Sage Therapeutics and Valneva SE 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 Sage Therapeutics and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sage Therapeutics and Valneva SE ADR, you can compare the effects of market volatilities on Sage Therapeutics and Valneva SE 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 Sage Therapeutics with a short position of Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sage Therapeutics and Valneva SE.

Diversification Opportunities for Sage Therapeutics and Valneva SE

0.0

Correlation Coefficient

Sage Therapeutics  Valneva SE

Pay attention - limited upside

The 3 months correlation between Sage and Valneva is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sage Therapeutics and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR and Sage Therapeutics 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 Sage Therapeutics are associated (or correlated) with Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE ADR has no effect on the direction of Sage Therapeutics i.e., Sage Therapeutics and Valneva SE go up and down completely randomly.

Pair Corralation between Sage Therapeutics and Valneva SE

If you would invest  889.00  in Valneva SE ADR on September 12, 2025 and sell it today you would earn a total of  6.00  from holding Valneva SE ADR or generate 0.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Sage Therapeutics  vs.  Valneva SE ADR

Sage Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Sage Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Sage Therapeutics is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Valneva SE ADR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Valneva SE ADR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Sage Therapeutics and Valneva SE

The main advantage of trading using opposite Sage Therapeutics and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sage Therapeutics position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.

The idea behind Sage Therapeutics and Valneva SE ADR 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 Global Correlations module to find global opportunities by holding instruments from different markets.