Correlation Between Implanet and Biophytis
Can any of the company-specific risk be diversified away by investing in both Implanet and Biophytis 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 Implanet and Biophytis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Implanet SA and Biophytis SA, you can compare the effects of market volatilities on Implanet and Biophytis 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 Implanet with a short position of Biophytis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Implanet and Biophytis.
Diversification Opportunities for Implanet and Biophytis
Excellent diversification
The 3 months correlation between Implanet and Biophytis is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Implanet SA and Biophytis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biophytis SA and Implanet 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 Implanet SA are associated (or correlated) with Biophytis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biophytis SA has no effect on the direction of Implanet i.e., Implanet and Biophytis go up and down completely randomly.
Pair Corralation between Implanet and Biophytis
Assuming the 90 days trading horizon Implanet SA is expected to under-perform the Biophytis. In addition to that, Implanet is 1.07 times more volatile than Biophytis SA. It trades about -0.2 of its total potential returns per unit of risk. Biophytis SA is currently generating about -0.07 per unit of volatility. If you would invest 33.00 in Biophytis SA on September 12, 2024 and sell it today you would lose (2.00) from holding Biophytis SA or give up 6.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Implanet SA vs. Biophytis SA
Performance |
| Timeline |
| Implanet SA |
| Biophytis SA |
Implanet and Biophytis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Implanet and Biophytis
The main advantage of trading using opposite Implanet and Biophytis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Implanet position performs unexpectedly, Biophytis 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 Biophytis will offset losses from the drop in Biophytis' long position.The idea behind Implanet SA and Biophytis 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.| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |