Correlation Between DBV Technologies and Cellectis

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

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

Diversification Opportunities for DBV Technologies and Cellectis

-0.31

Correlation Coefficient

DBV Technologies  Cellectis

Very good diversification

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

Pair Corralation between DBV Technologies and Cellectis

Assuming the 90 days trading horizon DBV Technologies SA is expected to generate 2.54 times more return on investment than Cellectis. However, DBV Technologies is 2.54 times more volatile than Cellectis. It trades about 0.08 of its potential returns per unit of risk. Cellectis is currently generating about -0.1 per unit of risk. 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

DBV Technologies SA  vs.  Cellectis

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.

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.

Pair Trading with DBV Technologies and Cellectis

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

The idea behind DBV Technologies SA and Cellectis 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.