Correlation Between Abivax SA and Medincell
Can any of the company-specific risk be diversified away by investing in both Abivax SA and Medincell 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 SA and Medincell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abivax SA and Medincell SA, you can compare the effects of market volatilities on Abivax SA and Medincell 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 SA with a short position of Medincell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abivax SA and Medincell.
Diversification Opportunities for Abivax SA and Medincell
Significant diversification
The 3 months correlation between Abivax and Medincell is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Abivax SA and Medincell SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medincell SA and Abivax SA 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 SA are associated (or correlated) with Medincell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medincell SA has no effect on the direction of Abivax SA i.e., Abivax SA and Medincell go up and down completely randomly.
Pair Corralation between Abivax SA and Medincell
Assuming the 90 days trading horizon Abivax SA is expected to under-perform the Medincell. In addition to that, Abivax SA is 1.05 times more volatile than Medincell SA. It trades about -0.12 of its total potential returns per unit of risk. Medincell SA is currently generating about 0.05 per unit of volatility. If you would invest 1,620 in Medincell SA on September 1, 2024 and sell it today you would earn a total of 192.00 from holding Medincell SA or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Abivax SA vs. Medincell SA
Performance |
| Timeline |
| Abivax SA |
| Medincell SA |
Abivax SA and Medincell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abivax SA and Medincell
The main advantage of trading using opposite Abivax SA and Medincell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abivax SA position performs unexpectedly, Medincell 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 Medincell will offset losses from the drop in Medincell's long position.The idea behind Abivax SA and Medincell SA 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.| Medincell vs. Innate Pharma | Medincell vs. Nanobiotix SA | Medincell vs. Genfit | Medincell vs. AB Science SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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