Correlation Between Inventiva and Nuvation Bio
Can any of the company-specific risk be diversified away by investing in both Inventiva and Nuvation Bio 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 Nuvation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventiva Sa and Nuvation Bio, you can compare the effects of market volatilities on Inventiva and Nuvation Bio 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 Nuvation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventiva and Nuvation Bio.
Diversification Opportunities for Inventiva and Nuvation Bio
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inventiva and Nuvation is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Inventiva Sa and Nuvation Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvation Bio 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 Nuvation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvation Bio has no effect on the direction of Inventiva i.e., Inventiva and Nuvation Bio go up and down completely randomly.
Pair Corralation between Inventiva and Nuvation Bio
Considering the 90-day investment horizon Inventiva Sa is expected to under-perform the Nuvation Bio. But the stock apears to be less risky and, when comparing its historical volatility, Inventiva Sa is 2.12 times less risky than Nuvation Bio. The stock trades about -0.02 of its potential returns per unit of risk. The Nuvation Bio is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 235.00 in Nuvation Bio on August 28, 2024 and sell it today you would earn a total of 54.00 from holding Nuvation Bio or generate 22.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventiva Sa vs. Nuvation Bio
Performance |
| Timeline |
| Inventiva Sa |
| Nuvation Bio |
Inventiva and Nuvation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventiva and Nuvation Bio
The main advantage of trading using opposite Inventiva and Nuvation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventiva position performs unexpectedly, Nuvation Bio 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 Nuvation Bio will offset losses from the drop in Nuvation Bio's long position.| Inventiva vs. Mineralys Therapeutics, Common | Inventiva vs. Eliem Therapeutics | Inventiva vs. Anebulo Pharmaceuticals | Inventiva vs. Janux Therapeutics |
| Nuvation Bio vs. Eliem Therapeutics | Nuvation Bio vs. HCW Biologics | Nuvation Bio vs. Scpharmaceuticals | Nuvation Bio vs. Milestone Pharmaceuticals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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