Correlation Between Eton Pharmaceuticals and Inventiva
Can any of the company-specific risk be diversified away by investing in both Eton Pharmaceuticals 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 Eton Pharmaceuticals and Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eton Pharmaceuticals and Inventiva Sa, you can compare the effects of market volatilities on Eton Pharmaceuticals 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 Eton Pharmaceuticals with a short position of Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eton Pharmaceuticals and Inventiva.
Diversification Opportunities for Eton Pharmaceuticals and Inventiva
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eton and Inventiva is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eton Pharmaceuticals and Inventiva Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva Sa and Eton Pharmaceuticals 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 Eton Pharmaceuticals 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 Eton Pharmaceuticals i.e., Eton Pharmaceuticals and Inventiva go up and down completely randomly.
Pair Corralation between Eton Pharmaceuticals and Inventiva
Given the investment horizon of 90 days Eton Pharmaceuticals is expected to generate 1.16 times less return on investment than Inventiva. But when comparing it to its historical volatility, Eton Pharmaceuticals is 1.12 times less risky than Inventiva. It trades about 0.16 of its potential returns per unit of risk. Inventiva Sa is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Inventiva Sa on November 18, 2024 and sell it today you would earn a total of 35.00 from holding Inventiva Sa or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eton Pharmaceuticals vs. Inventiva Sa
Performance |
| Timeline |
| Eton Pharmaceuticals |
| Inventiva Sa |
Eton Pharmaceuticals and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eton Pharmaceuticals and Inventiva
The main advantage of trading using opposite Eton Pharmaceuticals and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eton Pharmaceuticals 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.| Eton Pharmaceuticals vs. Canopy Growth Corp | Eton Pharmaceuticals vs. SNDL Inc | Eton Pharmaceuticals vs. Cronos Group | Eton Pharmaceuticals vs. Curaleaf Holdings |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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