Correlation Between Quantum Genomics and DBV Technologies

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

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

Diversification Opportunities for Quantum Genomics and DBV Technologies

0.28

Correlation Coefficient

Quantum Genomics  DBV Technologies

Modest diversification

The 3 months correlation between Quantum and DBV is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Genomics SA and DBV Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies and Quantum Genomics 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 Quantum Genomics SA 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 Quantum Genomics i.e., Quantum Genomics and DBV Technologies go up and down completely randomly.

Pair Corralation between Quantum Genomics and DBV Technologies

If you would invest  63.00  in DBV Technologies SA on October 16, 2024 and sell it today you would earn a total of  29.00  from holding DBV Technologies SA or generate 46.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.74%
Values	Daily Returns

Quantum Genomics SA  vs.  DBV Technologies SA

Quantum Genomics

Risk-Adjusted Performance

0 of 100

Very Weak

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

DBV Technologies

Risk-Adjusted Performance

6 of 100

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 Quantum Genomics and DBV Technologies

The main advantage of trading using opposite Quantum Genomics and DBV Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum Genomics 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 Quantum Genomics SA 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.