Correlation Between Inventiva and DBV Technologies
Can any of the company-specific risk be diversified away by investing in both Inventiva and DBV Technologies 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 DBV Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventiva SA and DBV Technologies SA, you can compare the effects of market volatilities on Inventiva and DBV Technologies 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 DBV Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventiva and DBV Technologies.
Diversification Opportunities for Inventiva and DBV Technologies
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inventiva and DBV is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Inventiva SA and DBV Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies 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 DBV Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBV Technologies has no effect on the direction of Inventiva i.e., Inventiva and DBV Technologies go up and down completely randomly.
Pair Corralation between Inventiva and DBV Technologies
Assuming the 90 days trading horizon Inventiva SA is expected to generate 0.48 times more return on investment than DBV Technologies. However, Inventiva SA is 2.07 times less risky than DBV Technologies. It trades about -0.03 of its potential returns per unit of risk. DBV Technologies SA is currently generating about -0.28 per unit of risk. 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 |
Inventiva SA vs. DBV Technologies SA
Performance |
| Timeline |
| Inventiva SA |
| DBV Technologies |
Inventiva and DBV Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventiva and DBV Technologies
The main advantage of trading using opposite Inventiva and DBV Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventiva position performs unexpectedly, DBV Technologies 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 DBV Technologies will offset losses from the drop in DBV Technologies' long position.| Inventiva vs. Gensight Biologics SA | Inventiva vs. Argen X | Inventiva vs. Abivax SA | Inventiva vs. DBV Technologies SA |
| DBV Technologies vs. Biomerieux SA | DBV Technologies vs. Eurofins Scientific SE | DBV Technologies vs. Sartorius Stedim Biotech | DBV Technologies vs. SEB 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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