Correlation Between VANGUARD FUNDS and Valneva SE

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

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

Diversification Opportunities for VANGUARD FUNDS and Valneva SE

0.06

Correlation Coefficient

VANGUARD FUNDS  Valneva SE

Significant diversification

The 3 months correlation between VANGUARD and Valneva is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding VANGUARD FUNDS PLC 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 VANGUARD FUNDS 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 VANGUARD FUNDS PLC 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 VANGUARD FUNDS i.e., VANGUARD FUNDS and Valneva SE go up and down completely randomly.

Pair Corralation between VANGUARD FUNDS and Valneva SE

Assuming the 90 days horizon VANGUARD FUNDS is expected to generate 1.88 times less return on investment than Valneva SE. But when comparing it to its historical volatility, VANGUARD FUNDS PLC is 4.45 times less risky than Valneva SE. It trades about 0.17 of its potential returns per unit of risk. Valneva SE ADR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  648.00  in Valneva SE ADR on May 6, 2025 and sell it today you would earn a total of  74.00  from holding Valneva SE ADR or generate 11.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	91.94%
Values	Daily Returns

VANGUARD FUNDS PLC  vs.  Valneva SE ADR

VANGUARD FUNDS PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VANGUARD FUNDS PLC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, VANGUARD FUNDS may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Valneva SE ADR

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Valneva SE ADR are ranked lower than 5 (%) 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.

Pair Trading with VANGUARD FUNDS and Valneva SE

The main advantage of trading using opposite VANGUARD FUNDS and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VANGUARD FUNDS 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 VANGUARD FUNDS PLC 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.