Correlation Between DBV Technologies and Gevelot
Can any of the company-specific risk be diversified away by investing in both DBV Technologies and Gevelot 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 DBV Technologies and Gevelot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBV Technologies SA and Gevelot, you can compare the effects of market volatilities on DBV Technologies and Gevelot 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 DBV Technologies with a short position of Gevelot. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBV Technologies and Gevelot.
Diversification Opportunities for DBV Technologies and Gevelot
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DBV and Gevelot is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding DBV Technologies SA and Gevelot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gevelot and DBV Technologies 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 DBV Technologies SA are associated (or correlated) with Gevelot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gevelot has no effect on the direction of DBV Technologies i.e., DBV Technologies and Gevelot go up and down completely randomly.
Pair Corralation between DBV Technologies and Gevelot
Assuming the 90 days trading horizon DBV Technologies SA is expected to generate 5.35 times more return on investment than Gevelot. However, DBV Technologies is 5.35 times more volatile than Gevelot. It trades about 0.09 of its potential returns per unit of risk. Gevelot is currently generating about -0.03 per unit of risk. If you would invest 72.00 in DBV Technologies SA on January 18, 2025 and sell it today you would earn a total of 61.00 from holding DBV Technologies SA or generate 84.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBV Technologies SA vs. Gevelot
Performance |
| Timeline |
| DBV Technologies |
| Gevelot |
DBV Technologies and Gevelot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBV Technologies and Gevelot
The main advantage of trading using opposite DBV Technologies and Gevelot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBV Technologies position performs unexpectedly, Gevelot 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 Gevelot will offset losses from the drop in Gevelot's long position.| DBV Technologies vs. Genfit SA | DBV Technologies vs. Innate Pharma | DBV Technologies vs. Cellectis | DBV Technologies vs. Nanobiotix SA |
| Gevelot vs. Passat Socit Anonyme | Gevelot vs. Groupe Guillin SA | Gevelot vs. Jacques Bogart SA | Gevelot vs. VIEL Cie socit |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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