Correlation Between Abivax SA and Amplitude Surgical

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

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

Diversification Opportunities for Abivax SA and Amplitude Surgical

-0.29

Correlation Coefficient

Abivax SA  Amplitude Surgical

Very good diversification

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

Pair Corralation between Abivax SA and Amplitude Surgical

Assuming the 90 days trading horizon Abivax SA is expected to under-perform the Amplitude Surgical. In addition to that, Abivax SA is 1.23 times more volatile than Amplitude Surgical SAS. It trades about -0.21 of its total potential returns per unit of risk. Amplitude Surgical SAS is currently generating about -0.2 per unit of volatility. If you would invest  348.00  in Amplitude Surgical SAS on September 26, 2024 and sell it today you would lose (36.00) from holding Amplitude Surgical SAS or give up 10.34% of portfolio value over 90 days.

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

Abivax SA  vs.  Amplitude Surgical SAS

Abivax SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Abivax SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Amplitude Surgical SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplitude Surgical SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Amplitude Surgical is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Abivax SA and Amplitude Surgical

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

The idea behind Abivax SA and Amplitude Surgical SAS 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.