Correlation Between Abeona Therapeutics and Invivyd

Can any of the company-specific risk be diversified away by investing in both Abeona Therapeutics and Invivyd 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 Abeona Therapeutics and Invivyd into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Abeona Therapeutics and Invivyd, you can compare the effects of market volatilities on Abeona Therapeutics and Invivyd 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 Abeona Therapeutics with a short position of Invivyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abeona Therapeutics and Invivyd.

Diversification Opportunities for Abeona Therapeutics and Invivyd

0.29

Correlation Coefficient

Abeona Therapeutics  Invivyd

Modest diversification

The 3 months correlation between Abeona and Invivyd is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Abeona Therapeutics and Invivyd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invivyd and Abeona Therapeutics 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 Abeona Therapeutics are associated (or correlated) with Invivyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invivyd has no effect on the direction of Abeona Therapeutics i.e., Abeona Therapeutics and Invivyd go up and down completely randomly.

Pair Corralation between Abeona Therapeutics and Invivyd

Given the investment horizon of 90 days Abeona Therapeutics is expected to under-perform the Invivyd. But the stock apears to be less risky and, when comparing its historical volatility, Abeona Therapeutics is 9.67 times less risky than Invivyd. The stock trades about -0.05 of its potential returns per unit of risk. The Invivyd is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  46.00  in Invivyd on December 29, 2024 and sell it today you would earn a total of  15.00  from holding Invivyd or generate 32.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Abeona Therapeutics  vs.  Invivyd

Abeona Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Abeona Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Invivyd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Invivyd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Invivyd exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Abeona Therapeutics and Invivyd

The main advantage of trading using opposite Abeona Therapeutics and Invivyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abeona Therapeutics position performs unexpectedly, Invivyd 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 Invivyd will offset losses from the drop in Invivyd's long position.

The idea behind Abeona Therapeutics and Invivyd 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.