Correlation Between Oxford BioDynamics and ABIVAX Société
Can any of the company-specific risk be diversified away by investing in both Oxford BioDynamics and ABIVAX Société 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 Oxford BioDynamics and ABIVAX Société into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford BioDynamics Plc and ABIVAX Socit Anonyme, you can compare the effects of market volatilities on Oxford BioDynamics and ABIVAX Société 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 Oxford BioDynamics with a short position of ABIVAX Société. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford BioDynamics and ABIVAX Société.
Diversification Opportunities for Oxford BioDynamics and ABIVAX Société
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxford and ABIVAX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oxford BioDynamics Plc and ABIVAX Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABIVAX Socit Anonyme and Oxford BioDynamics 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 Oxford BioDynamics Plc are associated (or correlated) with ABIVAX Société. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABIVAX Socit Anonyme has no effect on the direction of Oxford BioDynamics i.e., Oxford BioDynamics and ABIVAX Société go up and down completely randomly.
Pair Corralation between Oxford BioDynamics and ABIVAX Société
If you would invest 1.95 in Oxford BioDynamics Plc on August 28, 2024 and sell it today you would earn a total of 0.15 from holding Oxford BioDynamics Plc or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford BioDynamics Plc vs. ABIVAX Socit Anonyme
Performance |
| Timeline |
| Oxford BioDynamics Plc |
| ABIVAX Socit Anonyme |
Oxford BioDynamics and ABIVAX Société Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford BioDynamics and ABIVAX Société
The main advantage of trading using opposite Oxford BioDynamics and ABIVAX Société positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford BioDynamics position performs unexpectedly, ABIVAX Société 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 ABIVAX Société will offset losses from the drop in ABIVAX Société's long position.The idea behind Oxford BioDynamics Plc and ABIVAX Socit Anonyme 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.| ABIVAX Société vs. Advanced Proteome Therapeutics | ABIVAX Société vs. Oxford BioDynamics Plc | ABIVAX Société vs. GeneThera | ABIVAX Société vs. ChitogenX |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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