Correlation Between Inventiva and FIXX Old
Can any of the company-specific risk be diversified away by investing in both Inventiva and FIXX Old 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 FIXX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventiva Sa and FIXX Old, you can compare the effects of market volatilities on Inventiva and FIXX Old 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 FIXX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventiva and FIXX Old.
Diversification Opportunities for Inventiva and FIXX Old
Very weak diversification
The 3 months correlation between Inventiva and FIXX is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Inventiva Sa and FIXX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIXX Old 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 FIXX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIXX Old has no effect on the direction of Inventiva i.e., Inventiva and FIXX Old go up and down completely randomly.
Pair Corralation between Inventiva and FIXX Old
If you would invest 109.00 in FIXX Old on October 25, 2024 and sell it today you would earn a total of 0.00 from holding FIXX Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Inventiva Sa vs. FIXX Old
Performance |
| Timeline |
| Inventiva Sa |
| FIXX Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Inventiva and FIXX Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventiva and FIXX Old
The main advantage of trading using opposite Inventiva and FIXX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventiva position performs unexpectedly, FIXX Old 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 FIXX Old will offset losses from the drop in FIXX Old's long position.| Inventiva vs. Mineralys Therapeutics, Common | Inventiva vs. Anebulo Pharmaceuticals | Inventiva vs. Janux Therapeutics | Inventiva vs. Rezolute |
| FIXX Old vs. Passage Bio | FIXX Old vs. Stoke Therapeutics | FIXX Old vs. Adaptimmune Therapeutics Plc | FIXX Old vs. Black Diamond 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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