Correlation Between Inventiva and Bioatla
Can any of the company-specific risk be diversified away by investing in both Inventiva and Bioatla 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 Bioatla into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventiva Sa and Bioatla, you can compare the effects of market volatilities on Inventiva and Bioatla 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 Bioatla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventiva and Bioatla.
Diversification Opportunities for Inventiva and Bioatla
Significant diversification
The 3 months correlation between Inventiva and Bioatla is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Inventiva Sa and Bioatla in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioatla 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 Bioatla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioatla has no effect on the direction of Inventiva i.e., Inventiva and Bioatla go up and down completely randomly.
Pair Corralation between Inventiva and Bioatla
Considering the 90-day investment horizon Inventiva Sa is expected to generate 0.28 times more return on investment than Bioatla. However, Inventiva Sa is 3.53 times less risky than Bioatla. It trades about -0.05 of its potential returns per unit of risk. Bioatla is currently generating about -0.15 per unit of risk. If you would invest 271.00 in Inventiva Sa on August 29, 2024 and sell it today you would lose (7.00) from holding Inventiva Sa or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventiva Sa vs. Bioatla
Performance |
| Timeline |
| Inventiva Sa |
| Bioatla |
Inventiva and Bioatla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventiva and Bioatla
The main advantage of trading using opposite Inventiva and Bioatla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventiva position performs unexpectedly, Bioatla 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 Bioatla will offset losses from the drop in Bioatla's long position.| Inventiva vs. Mineralys Therapeutics, Common | Inventiva vs. Eliem Therapeutics | Inventiva vs. Anebulo Pharmaceuticals | Inventiva vs. Janux Therapeutics |
| Bioatla vs. Pmv Pharmaceuticals | Bioatla vs. C4 Therapeutics | Bioatla vs. Nautilus Biotechnology | Bioatla vs. Century 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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