Correlation Between Inventiva and Cellectis
Can any of the company-specific risk be diversified away by investing in both Inventiva and Cellectis 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 Inventiva and Cellectis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventiva SA and Cellectis, you can compare the effects of market volatilities on Inventiva and Cellectis 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 Inventiva with a short position of Cellectis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventiva and Cellectis.
Diversification Opportunities for Inventiva and Cellectis
Very good diversification
The 3 months correlation between Inventiva and Cellectis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Inventiva SA and Cellectis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis and Inventiva 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 Inventiva SA are associated (or correlated) with Cellectis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectis has no effect on the direction of Inventiva i.e., Inventiva and Cellectis go up and down completely randomly.
Pair Corralation between Inventiva and Cellectis
Assuming the 90 days trading horizon Inventiva SA is expected to under-perform the Cellectis. But the stock apears to be less risky and, when comparing its historical volatility, Inventiva SA is 2.06 times less risky than Cellectis. The stock trades about 0.0 of its potential returns per unit of risk. The Cellectis is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Cellectis on September 1, 2024 and sell it today you would lose (28.00) from holding Cellectis or give up 12.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventiva SA vs. Cellectis
Performance |
| Timeline |
| Inventiva SA |
| Cellectis |
Inventiva and Cellectis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventiva and Cellectis
The main advantage of trading using opposite Inventiva and Cellectis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventiva position performs unexpectedly, Cellectis 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 Cellectis will offset losses from the drop in Cellectis' long position.| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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