Correlation Between Vericel Corp and Valneva SE

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

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

Diversification Opportunities for Vericel Corp and Valneva SE

-0.36

Correlation Coefficient

Vericel Corp  Valneva SE

Very good diversification

The 3 months correlation between Vericel and Valneva is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord 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 Vericel Corp 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 Vericel Corp Ord 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 Vericel Corp i.e., Vericel Corp and Valneva SE go up and down completely randomly.

Pair Corralation between Vericel Corp and Valneva SE

Given the investment horizon of 90 days Vericel Corp Ord is expected to under-perform the Valneva SE. In addition to that, Vericel Corp is 1.1 times more volatile than Valneva SE ADR. It trades about -0.03 of its total potential returns per unit of risk. Valneva SE ADR is currently generating about 0.06 per unit of volatility. If you would invest  666.00  in Valneva SE ADR on May 5, 2025 and sell it today you would earn a total of  56.00  from holding Valneva SE ADR or generate 8.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vericel Corp Ord  vs.  Valneva SE ADR

Vericel Corp Ord

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vericel Corp Ord has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Vericel Corp is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Valneva SE ADR

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Valneva SE ADR are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile essential indicators, Valneva SE may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Vericel Corp and Valneva SE

The main advantage of trading using opposite Vericel Corp and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp 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 Vericel Corp Ord 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.