Correlation Between Inventiva and Nanobiotix
Can any of the company-specific risk be diversified away by investing in both Inventiva and Nanobiotix 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 Nanobiotix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventiva SA and Nanobiotix SA, you can compare the effects of market volatilities on Inventiva and Nanobiotix 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 Nanobiotix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventiva and Nanobiotix.
Diversification Opportunities for Inventiva and Nanobiotix
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inventiva and Nanobiotix is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Inventiva SA and Nanobiotix SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanobiotix SA 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 Nanobiotix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanobiotix SA has no effect on the direction of Inventiva i.e., Inventiva and Nanobiotix go up and down completely randomly.
Pair Corralation between Inventiva and Nanobiotix
Assuming the 90 days trading horizon Inventiva SA is expected to under-perform the Nanobiotix. But the stock apears to be less risky and, when comparing its historical volatility, Inventiva SA is 1.85 times less risky than Nanobiotix. The stock trades about -0.01 of its potential returns per unit of risk. The Nanobiotix SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Nanobiotix SA on August 25, 2024 and sell it today you would lose (42.00) from holding Nanobiotix SA or give up 10.71% 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. Nanobiotix SA
Performance |
| Timeline |
| Inventiva SA |
| Nanobiotix SA |
Inventiva and Nanobiotix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventiva and Nanobiotix
The main advantage of trading using opposite Inventiva and Nanobiotix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventiva position performs unexpectedly, Nanobiotix 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 Nanobiotix will offset losses from the drop in Nanobiotix's 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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