Correlation Between Replimune and Inventiva
Can any of the company-specific risk be diversified away by investing in both Replimune 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 Replimune and Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Replimune Group and Inventiva Sa, you can compare the effects of market volatilities on Replimune 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 Replimune with a short position of Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Replimune and Inventiva.
Diversification Opportunities for Replimune and Inventiva
Average diversification
The 3 months correlation between Replimune and Inventiva is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Replimune Group and Inventiva Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva Sa and Replimune 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 Replimune Group 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 Replimune i.e., Replimune and Inventiva go up and down completely randomly.
Pair Corralation between Replimune and Inventiva
Given the investment horizon of 90 days Replimune Group is expected to generate 1.14 times more return on investment than Inventiva. However, Replimune is 1.14 times more volatile than Inventiva Sa. It trades about 0.06 of its potential returns per unit of risk. Inventiva Sa is currently generating about -0.04 per unit of risk. If you would invest 1,317 in Replimune Group on November 4, 2024 and sell it today you would earn a total of 81.00 from holding Replimune Group or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Replimune Group vs. Inventiva Sa
Performance |
| Timeline |
| Replimune Group |
| Inventiva Sa |
Replimune and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Replimune and Inventiva
The main advantage of trading using opposite Replimune and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Replimune 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.| Replimune vs. Nuvalent | Replimune vs. Ventyx Biosciences | Replimune vs. Ascendis Pharma AS | Replimune vs. United Therapeutics |
| Inventiva vs. Mineralys Therapeutics, Common | Inventiva vs. Anebulo Pharmaceuticals | Inventiva vs. Janux Therapeutics | Inventiva vs. Rezolute |
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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