Correlation Between Nanobiotix and Inventiva
Can any of the company-specific risk be diversified away by investing in both Nanobiotix and Inventiva 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 Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanobiotix SA and Inventiva SA, you can compare the effects of market volatilities on Nanobiotix and Inventiva 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 Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanobiotix and Inventiva.
Diversification Opportunities for Nanobiotix and Inventiva
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nanobiotix and Inventiva is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nanobiotix SA and Inventiva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva SA 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 Inventiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventiva SA has no effect on the direction of Nanobiotix i.e., Nanobiotix and Inventiva go up and down completely randomly.
Pair Corralation between Nanobiotix and Inventiva
Assuming the 90 days trading horizon Nanobiotix SA is expected to under-perform the Inventiva. In addition to that, Nanobiotix is 1.1 times more volatile than Inventiva SA. It trades about -0.41 of its total potential returns per unit of risk. Inventiva SA is currently generating about 0.0 per unit of volatility. If you would invest 245.00 in Inventiva SA on August 25, 2024 and sell it today you would lose (1.00) from holding Inventiva SA or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanobiotix SA vs. Inventiva SA
Performance |
| Timeline |
| Nanobiotix SA |
| Inventiva SA |
Nanobiotix and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanobiotix and Inventiva
The main advantage of trading using opposite Nanobiotix and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanobiotix position performs unexpectedly, Inventiva 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 Inventiva will offset losses from the drop in Inventiva's long position.The idea behind Nanobiotix SA and Inventiva SA 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.| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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