Correlation Between Biophytis and Integragen

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

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

Diversification Opportunities for Biophytis and Integragen

0.09

Correlation Coefficient

Biophytis  Integragen

Significant diversification

The 3 months correlation between Biophytis and Integragen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Biophytis SA and Integragen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integragen and Biophytis 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 Biophytis SA are associated (or correlated) with Integragen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integragen has no effect on the direction of Biophytis i.e., Biophytis and Integragen go up and down completely randomly.

Pair Corralation between Biophytis and Integragen

Assuming the 90 days trading horizon Biophytis is expected to generate 3.56 times less return on investment than Integragen. In addition to that, Biophytis is 1.17 times more volatile than Integragen. It trades about 0.02 of its total potential returns per unit of risk. Integragen is currently generating about 0.07 per unit of volatility. If you would invest  51.00  in Integragen on October 24, 2024 and sell it today you would earn a total of  8.00  from holding Integragen or generate 15.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Biophytis SA  vs.  Integragen

Biophytis SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Biophytis SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Biophytis may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Integragen

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Integragen are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Integragen reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Biophytis and Integragen

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

The idea behind Biophytis SA and Integragen 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.