Correlation Between DBV Technologies and Inventiva
Can any of the company-specific risk be diversified away by investing in both DBV Technologies 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 DBV Technologies and Inventiva 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 Inventiva SA, you can compare the effects of market volatilities on DBV Technologies 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 DBV Technologies with a short position of Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBV Technologies and Inventiva.
Diversification Opportunities for DBV Technologies and Inventiva
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between DBV and Inventiva is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding DBV Technologies SA and Inventiva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva 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 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 DBV Technologies i.e., DBV Technologies and Inventiva go up and down completely randomly.
Pair Corralation between DBV Technologies and Inventiva
Assuming the 90 days trading horizon DBV Technologies SA is expected to under-perform the Inventiva. In addition to that, DBV Technologies is 2.07 times more volatile than Inventiva SA. It trades about -0.28 of its total potential returns per unit of risk. Inventiva SA is currently generating about -0.03 per unit of volatility. If you would invest 246.00 in Inventiva SA on August 29, 2024 and sell it today you would lose (4.00) from holding Inventiva SA or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBV Technologies SA vs. Inventiva SA
Performance |
| Timeline |
| DBV Technologies |
| Inventiva SA |
DBV Technologies and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBV Technologies and Inventiva
The main advantage of trading using opposite DBV Technologies and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBV Technologies 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.| DBV Technologies vs. Biomerieux SA | DBV Technologies vs. Eurofins Scientific SE | DBV Technologies vs. Sartorius Stedim Biotech | DBV Technologies vs. SEB SA |
| Inventiva vs. Gensight Biologics SA | Inventiva vs. Argen X | Inventiva vs. Abivax SA | Inventiva vs. DBV Technologies 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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