Correlation Between Abivax SA and Nanobiotix
Can any of the company-specific risk be diversified away by investing in both Abivax SA and Nanobiotix 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 Nanobiotix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abivax SA and Nanobiotix SA, you can compare the effects of market volatilities on Abivax SA and Nanobiotix 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 Nanobiotix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abivax SA and Nanobiotix.
Diversification Opportunities for Abivax SA and Nanobiotix
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abivax and Nanobiotix is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Abivax SA and Nanobiotix SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanobiotix 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 Nanobiotix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanobiotix SA has no effect on the direction of Abivax SA i.e., Abivax SA and Nanobiotix go up and down completely randomly.
Pair Corralation between Abivax SA and Nanobiotix
Assuming the 90 days trading horizon Abivax SA is expected to generate 1.03 times more return on investment than Nanobiotix. However, Abivax SA is 1.03 times more volatile than Nanobiotix SA. It trades about -0.37 of its potential returns per unit of risk. Nanobiotix SA is currently generating about -0.5 per unit of risk. If you would invest 962.00 in Abivax SA on August 29, 2024 and sell it today you would lose (179.00) from holding Abivax SA or give up 18.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abivax SA vs. Nanobiotix SA
Performance |
| Timeline |
| Abivax SA |
| Nanobiotix SA |
Abivax SA and Nanobiotix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abivax SA and Nanobiotix
The main advantage of trading using opposite Abivax SA and Nanobiotix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abivax SA position performs unexpectedly, Nanobiotix 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 Nanobiotix will offset losses from the drop in Nanobiotix's long position.| Abivax SA vs. Biomerieux SA | Abivax SA vs. Eurofins Scientific SE | Abivax SA vs. Sartorius Stedim Biotech | Abivax SA vs. SEB SA |
| Nanobiotix vs. Vetoquinol | Nanobiotix vs. Trigano SA | Nanobiotix vs. Biomerieux SA | Nanobiotix vs. Sartorius Stedim Biotech |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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