Correlation Between IO Biotech and Inventiva
Can any of the company-specific risk be diversified away by investing in both IO Biotech 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 IO Biotech and Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IO Biotech and Inventiva Sa, you can compare the effects of market volatilities on IO Biotech 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 IO Biotech with a short position of Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of IO Biotech and Inventiva.
Diversification Opportunities for IO Biotech and Inventiva
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IOBT and Inventiva is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding IO Biotech and Inventiva Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva Sa and IO Biotech 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 IO Biotech 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 IO Biotech i.e., IO Biotech and Inventiva go up and down completely randomly.
Pair Corralation between IO Biotech and Inventiva
Given the investment horizon of 90 days IO Biotech is expected to under-perform the Inventiva. In addition to that, IO Biotech is 1.44 times more volatile than Inventiva Sa. It trades about -0.07 of its total potential returns per unit of risk. Inventiva Sa is currently generating about 0.05 per unit of volatility. If you would invest 239.00 in Inventiva Sa on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Inventiva Sa or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IO Biotech vs. Inventiva Sa
Performance |
| Timeline |
| IO Biotech |
| Inventiva Sa |
IO Biotech and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IO Biotech and Inventiva
The main advantage of trading using opposite IO Biotech and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IO Biotech 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.| IO Biotech vs. Pmv Pharmaceuticals | IO Biotech vs. Eliem Therapeutics | IO Biotech vs. MediciNova | IO Biotech vs. Pharvaris BV |
| Inventiva vs. Mineralys Therapeutics, Common | Inventiva vs. Eliem Therapeutics | Inventiva vs. Anebulo Pharmaceuticals | Inventiva vs. Janux Therapeutics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |