Correlation Between Biophytis and Cellectis
Can any of the company-specific risk be diversified away by investing in both Biophytis and Cellectis 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 Biophytis and Cellectis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biophytis SA and Cellectis, you can compare the effects of market volatilities on Biophytis and Cellectis 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 Biophytis with a short position of Cellectis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biophytis and Cellectis.
Diversification Opportunities for Biophytis and Cellectis
Very poor diversification
The 3 months correlation between Biophytis and Cellectis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Biophytis SA and Cellectis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis and Biophytis 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 Biophytis SA are associated (or correlated) with Cellectis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectis has no effect on the direction of Biophytis i.e., Biophytis and Cellectis go up and down completely randomly.
Pair Corralation between Biophytis and Cellectis
Assuming the 90 days trading horizon Biophytis SA is expected to under-perform the Cellectis. In addition to that, Biophytis is 1.63 times more volatile than Cellectis. It trades about -0.13 of its total potential returns per unit of risk. Cellectis is currently generating about -0.02 per unit of volatility. If you would invest 255.00 in Cellectis on September 2, 2024 and sell it today you would lose (62.00) from holding Cellectis or give up 24.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biophytis SA vs. Cellectis
Performance |
| Timeline |
| Biophytis SA |
| Cellectis |
Biophytis and Cellectis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biophytis and Cellectis
The main advantage of trading using opposite Biophytis and Cellectis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biophytis position performs unexpectedly, Cellectis 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 Cellectis will offset losses from the drop in Cellectis' long position.The idea behind Biophytis SA and Cellectis 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.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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |