Correlation Between Biophytis and LNA Sante
Can any of the company-specific risk be diversified away by investing in both Biophytis and LNA Sante 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 LNA Sante into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biophytis SA and LNA Sante SA, you can compare the effects of market volatilities on Biophytis and LNA Sante 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 LNA Sante. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biophytis and LNA Sante.
Diversification Opportunities for Biophytis and LNA Sante
Excellent diversification
The 3 months correlation between Biophytis and LNA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Biophytis SA and LNA Sante SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LNA Sante SA 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 LNA Sante. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LNA Sante SA has no effect on the direction of Biophytis i.e., Biophytis and LNA Sante go up and down completely randomly.
Pair Corralation between Biophytis and LNA Sante
Assuming the 90 days trading horizon Biophytis SA is expected to under-perform the LNA Sante. In addition to that, Biophytis is 2.26 times more volatile than LNA Sante SA. It trades about -0.14 of its total potential returns per unit of risk. LNA Sante SA is currently generating about 0.08 per unit of volatility. If you would invest 2,145 in LNA Sante SA on September 12, 2024 and sell it today you would earn a total of 200.00 from holding LNA Sante SA or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biophytis SA vs. LNA Sante SA
Performance |
| Timeline |
| Biophytis SA |
| LNA Sante SA |
Biophytis and LNA Sante Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biophytis and LNA Sante
The main advantage of trading using opposite Biophytis and LNA Sante positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biophytis position performs unexpectedly, LNA Sante 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 LNA Sante will offset losses from the drop in LNA Sante's long position.| Biophytis vs. Gensight Biologics SA | Biophytis vs. Innate Pharma | Biophytis vs. Poxel SA | Biophytis vs. Nanobiotix 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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