Correlation Between SEB SA and Abivax SA
Can any of the company-specific risk be diversified away by investing in both SEB SA and Abivax SA 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 SEB SA and Abivax SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEB SA and Abivax SA, you can compare the effects of market volatilities on SEB SA and Abivax SA 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 SEB SA with a short position of Abivax SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEB SA and Abivax SA.
Diversification Opportunities for SEB SA and Abivax SA
Good diversification
The 3 months correlation between SEB and Abivax is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SEB SA and Abivax SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abivax SA and SEB SA 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 SEB SA are associated (or correlated) with Abivax SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abivax SA has no effect on the direction of SEB SA i.e., SEB SA and Abivax SA go up and down completely randomly.
Pair Corralation between SEB SA and Abivax SA
Assuming the 90 days horizon SEB SA is expected to generate 0.73 times more return on investment than Abivax SA. However, SEB SA is 1.36 times less risky than Abivax SA. It trades about -0.01 of its potential returns per unit of risk. Abivax SA is currently generating about -0.22 per unit of risk. If you would invest 9,330 in SEB SA on August 29, 2024 and sell it today you would lose (270.00) from holding SEB SA or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEB SA vs. Abivax SA
Performance |
| Timeline |
| SEB SA |
| Abivax SA |
SEB SA and Abivax SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEB SA and Abivax SA
The main advantage of trading using opposite SEB SA and Abivax SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEB SA position performs unexpectedly, Abivax SA 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 SA will offset losses from the drop in Abivax SA's long position.The idea behind SEB SA and Abivax 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.| Abivax SA vs. Gensight Biologics SA | Abivax SA vs. Innate Pharma | Abivax SA vs. Poxel SA | Abivax SA 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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