Correlation Between Valneva SE and Simclar

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

Diversification Opportunities for Valneva SE and Simclar

-0.07

Correlation Coefficient

Valneva SE  Simclar

Good diversification

The 3 months correlation between Valneva and Simclar is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Simclar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simclar 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 Simclar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simclar has no effect on the direction of Valneva SE i.e., Valneva SE and Simclar go up and down completely randomly.

Pair Corralation between Valneva SE and Simclar

Given the investment horizon of 90 days Valneva SE ADR is expected to generate 0.28 times more return on investment than Simclar. However, Valneva SE ADR is 3.53 times less risky than Simclar. It trades about 0.26 of its potential returns per unit of risk. Simclar is currently generating about 0.06 per unit of risk. If you would invest  630.00  in Valneva SE ADR on May 21, 2025 and sell it today you would earn a total of  584.00  from holding Valneva SE ADR or generate 92.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.69%
Values	Daily Returns

Valneva SE ADR  vs.  Simclar

Valneva SE ADR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Valneva SE ADR are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile essential indicators, Valneva SE displayed solid returns over the last few months and may actually be approaching a breakup point.

Simclar

Risk-Adjusted Performance

Mild

Over the last 90 days Simclar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unfluctuating primary indicators, Simclar exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Valneva SE and Simclar

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

The idea behind Valneva SE ADR and Simclar 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.