Correlation Between ChitogenX and ABIVAX Socit

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

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

Diversification Opportunities for ChitogenX and ABIVAX Socit

0.41

Correlation Coefficient

ChitogenX  ABIVAX Socit

Very weak diversification

The 3 months correlation between ChitogenX and ABIVAX is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding ChitogenX and ABIVAX Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABIVAX Socit Anonyme and ChitogenX 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 ChitogenX are associated (or correlated) with ABIVAX Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABIVAX Socit Anonyme has no effect on the direction of ChitogenX i.e., ChitogenX and ABIVAX Socit go up and down completely randomly.

Pair Corralation between ChitogenX and ABIVAX Socit

Assuming the 90 days horizon ChitogenX is expected to under-perform the ABIVAX Socit. In addition to that, ChitogenX is 3.13 times more volatile than ABIVAX Socit Anonyme. It trades about -0.05 of its total potential returns per unit of risk. ABIVAX Socit Anonyme is currently generating about -0.02 per unit of volatility. If you would invest  737.00  in ABIVAX Socit Anonyme on December 30, 2024 and sell it today you would lose (46.00) from holding ABIVAX Socit Anonyme or give up 6.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.92%
Values	Daily Returns

ChitogenX  vs.  ABIVAX Socit Anonyme

ChitogenX

Risk-Adjusted Performance

Very Weak

Over the last 90 days ChitogenX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ABIVAX Socit Anonyme

Risk-Adjusted Performance

Very Weak

Over the last 90 days ABIVAX Socit Anonyme has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ABIVAX Socit is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ChitogenX and ABIVAX Socit

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

The idea behind ChitogenX and ABIVAX Socit Anonyme 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.