Correlation Between NYSE Composite and Inventiva
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Inventiva Sa, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Inventiva.
Diversification Opportunities for NYSE Composite and Inventiva
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Inventiva is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Inventiva Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva Sa and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Inventiva go up and down completely randomly.
Pair Corralation between NYSE Composite and Inventiva
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.13 times more return on investment than Inventiva. However, NYSE Composite is 7.48 times less risky than Inventiva. It trades about 0.14 of its potential returns per unit of risk. Inventiva Sa is currently generating about -0.02 per unit of risk. If you would invest 1,613,685 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 413,519 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Inventiva Sa
Performance |
| Timeline |
NYSE Composite and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Inventiva Sa
Pair trading matchups for Inventiva
Pair Trading with NYSE Composite and Inventiva
The main advantage of trading using opposite NYSE Composite and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Inventiva vs. Tff Pharmaceuticals | Inventiva vs. Eliem Therapeutics | Inventiva vs. Inhibrx | Inventiva vs. Enliven 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |