Correlation Between Nanobiotix and Integragen
Can any of the company-specific risk be diversified away by investing in both Nanobiotix and Integragen 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 Nanobiotix and Integragen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanobiotix SA and Integragen, you can compare the effects of market volatilities on Nanobiotix and Integragen 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 Nanobiotix with a short position of Integragen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanobiotix and Integragen.
Diversification Opportunities for Nanobiotix and Integragen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanobiotix and Integragen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nanobiotix SA and Integragen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integragen and Nanobiotix 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 Nanobiotix SA are associated (or correlated) with Integragen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integragen has no effect on the direction of Nanobiotix i.e., Nanobiotix and Integragen go up and down completely randomly.
Pair Corralation between Nanobiotix and Integragen
Assuming the 90 days trading horizon Nanobiotix SA is expected to generate 1.02 times more return on investment than Integragen. However, Nanobiotix is 1.02 times more volatile than Integragen. It trades about -0.04 of its potential returns per unit of risk. Integragen is currently generating about -0.06 per unit of risk. If you would invest 698.00 in Nanobiotix SA on September 12, 2024 and sell it today you would lose (379.00) from holding Nanobiotix SA or give up 54.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanobiotix SA vs. Integragen
Performance |
| Timeline |
| Nanobiotix SA |
| Integragen |
Nanobiotix and Integragen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanobiotix and Integragen
The main advantage of trading using opposite Nanobiotix and Integragen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanobiotix position performs unexpectedly, Integragen 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 Integragen will offset losses from the drop in Integragen's long position.The idea behind Nanobiotix SA and Integragen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Integragen vs. Gensight Biologics SA | Integragen vs. Innate Pharma | Integragen vs. Poxel SA | Integragen vs. Nanobiotix 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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