Correlation Between Cellectis and DBV Technologies

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

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

Diversification Opportunities for Cellectis and DBV Technologies

-0.31

Correlation Coefficient

Cellectis  DBV Technologies

Very good diversification

The 3 months correlation between Cellectis and DBV is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cellectis and DBV Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies and Cellectis 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 Cellectis are associated (or correlated) with DBV Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBV Technologies has no effect on the direction of Cellectis i.e., Cellectis and DBV Technologies go up and down completely randomly.

Pair Corralation between Cellectis and DBV Technologies

Assuming the 90 days trading horizon Cellectis is expected to under-perform the DBV Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Cellectis is 2.54 times less risky than DBV Technologies. The stock trades about -0.1 of its potential returns per unit of risk. The DBV Technologies SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  62.00  in DBV Technologies SA on November 28, 2024 and sell it today you would earn a total of  15.00  from holding DBV Technologies SA or generate 24.19% return on investment over 90 days.

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

Cellectis  vs.  DBV Technologies SA

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 March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

DBV Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DBV Technologies SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, DBV Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cellectis and DBV Technologies

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

The idea behind Cellectis and DBV Technologies 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.

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 Stocks Directory module to find actively traded stocks across global markets.