Correlation Between Aldel Financial and Inventiva
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Inventiva 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 Aldel Financial and Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Inventiva SA, you can compare the effects of market volatilities on Aldel Financial and Inventiva 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 Aldel Financial with a short position of Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Inventiva.
Diversification Opportunities for Aldel Financial and Inventiva
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aldel and Inventiva is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Inventiva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva SA and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Inventiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventiva SA has no effect on the direction of Aldel Financial i.e., Aldel Financial and Inventiva go up and down completely randomly.
Pair Corralation between Aldel Financial and Inventiva
If you would invest 990.00 in Aldel Financial II on October 31, 2024 and sell it today you would earn a total of 10.00 from holding Aldel Financial II or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 37.04% |
| Values | Daily Returns |
Aldel Financial II vs. Inventiva SA
Performance |
| Timeline |
| Aldel Financial II |
| Inventiva SA |
Aldel Financial and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Inventiva
The main advantage of trading using opposite Aldel Financial and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Inventiva 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 Inventiva will offset losses from the drop in Inventiva's long position.| Aldel Financial vs. Alaska Air Group | Aldel Financial vs. Alto Neuroscience, | Aldel Financial vs. Paysafe | Aldel Financial vs. Cirmaker Technology |
| Inventiva vs. Sino Biopharmaceutical Ltd | Inventiva vs. Defence Therapeutics | Inventiva vs. Enlivex Therapeutics | Inventiva vs. Living Cell Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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