Correlation Between Abivax SA and Cellectis

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

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

Diversification Opportunities for Abivax SA and Cellectis

0.13

Correlation Coefficient

Abivax SA  Cellectis

Average diversification

The 3 months correlation between Abivax and Cellectis is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Abivax SA and Cellectis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis and Abivax 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 Abivax SA are associated (or correlated) with Cellectis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectis has no effect on the direction of Abivax SA i.e., Abivax SA and Cellectis go up and down completely randomly.

Pair Corralation between Abivax SA and Cellectis

Assuming the 90 days trading horizon Abivax SA is expected to generate 1.33 times more return on investment than Cellectis. However, Abivax SA is 1.33 times more volatile than Cellectis. It trades about -0.01 of its potential returns per unit of risk. Cellectis is currently generating about -0.1 per unit of risk. If you would invest  670.00  in Abivax SA on December 29, 2024 and sell it today you would lose (68.00) from holding Abivax SA or give up 10.15% of portfolio value over 90 days.

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

Abivax SA  vs.  Cellectis

Abivax SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Abivax SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Abivax SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cellectis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cellectis has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Abivax SA and Cellectis

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

The idea behind Abivax SA and Cellectis 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.