Correlation Between ABIVAX Société and Northwest Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both ABIVAX Société and Northwest Biotherapeutics 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 ABIVAX Société and Northwest Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABIVAX Socit Anonyme and Northwest Biotherapeutics, you can compare the effects of market volatilities on ABIVAX Société and Northwest Biotherapeutics 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 ABIVAX Société with a short position of Northwest Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABIVAX Société and Northwest Biotherapeutics.
Diversification Opportunities for ABIVAX Société and Northwest Biotherapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ABIVAX and Northwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ABIVAX Socit Anonyme and Northwest Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northwest Biotherapeutics and ABIVAX Société 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 ABIVAX Socit Anonyme are associated (or correlated) with Northwest Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northwest Biotherapeutics has no effect on the direction of ABIVAX Société i.e., ABIVAX Société and Northwest Biotherapeutics go up and down completely randomly.
Pair Corralation between ABIVAX Société and Northwest Biotherapeutics
Assuming the 90 days horizon ABIVAX Socit Anonyme is expected to generate 1.29 times more return on investment than Northwest Biotherapeutics. However, ABIVAX Société is 1.29 times more volatile than Northwest Biotherapeutics. It trades about 0.04 of its potential returns per unit of risk. Northwest Biotherapeutics is currently generating about -0.04 per unit of risk. If you would invest 635.00 in ABIVAX Socit Anonyme on August 31, 2024 and sell it today you would earn a total of 470.00 from holding ABIVAX Socit Anonyme or generate 74.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABIVAX Socit Anonyme vs. Northwest Biotherapeutics
Performance |
| Timeline |
| ABIVAX Socit Anonyme |
| Northwest Biotherapeutics |
ABIVAX Société and Northwest Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABIVAX Société and Northwest Biotherapeutics
The main advantage of trading using opposite ABIVAX Société and Northwest Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABIVAX Société position performs unexpectedly, Northwest Biotherapeutics 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 Northwest Biotherapeutics will offset losses from the drop in Northwest Biotherapeutics' long position.| ABIVAX Société vs. Advanced Proteome Therapeutics | ABIVAX Société vs. Oxford BioDynamics Plc | ABIVAX Société vs. GeneThera | ABIVAX Société vs. ChitogenX |
Check out your portfolio center.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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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