Correlation Between DBV Technologies and Poujoulat
Can any of the company-specific risk be diversified away by investing in both DBV Technologies and Poujoulat 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 Poujoulat 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 Poujoulat SA, you can compare the effects of market volatilities on DBV Technologies and Poujoulat 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 Poujoulat. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBV Technologies and Poujoulat.
Diversification Opportunities for DBV Technologies and Poujoulat
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DBV and Poujoulat is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding DBV Technologies SA and Poujoulat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poujoulat SA 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 Poujoulat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poujoulat SA has no effect on the direction of DBV Technologies i.e., DBV Technologies and Poujoulat go up and down completely randomly.
Pair Corralation between DBV Technologies and Poujoulat
Assuming the 90 days trading horizon DBV Technologies SA is expected to under-perform the Poujoulat. In addition to that, DBV Technologies is 2.42 times more volatile than Poujoulat SA. It trades about -0.49 of its total potential returns per unit of risk. Poujoulat SA is currently generating about -0.14 per unit of volatility. If you would invest 1,080 in Poujoulat SA on August 25, 2024 and sell it today you would lose (45.00) from holding Poujoulat SA or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBV Technologies SA vs. Poujoulat SA
Performance |
| Timeline |
| DBV Technologies |
| Poujoulat SA |
DBV Technologies and Poujoulat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBV Technologies and Poujoulat
The main advantage of trading using opposite DBV Technologies and Poujoulat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBV Technologies position performs unexpectedly, Poujoulat 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 Poujoulat will offset losses from the drop in Poujoulat's long position.| DBV Technologies vs. Genfit | DBV Technologies vs. Innate Pharma | DBV Technologies vs. Cellectis | DBV Technologies vs. Nanobiotix SA |
| Poujoulat vs. Prodways Group SA | Poujoulat vs. Claranova SE | Poujoulat vs. DBV Technologies SA | Poujoulat vs. Manitou BF 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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