Correlation Between IShares ESG and ABIVAX Socit

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

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

Diversification Opportunities for IShares ESG and ABIVAX Socit

-0.17

Correlation Coefficient

IShares ESG  ABIVAX Socit

Good diversification

The 3 months correlation between IShares and ABIVAX is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG MSCI 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 IShares ESG 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 iShares ESG MSCI 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 IShares ESG i.e., IShares ESG and ABIVAX Socit go up and down completely randomly.

Pair Corralation between IShares ESG and ABIVAX Socit

Given the investment horizon of 90 days iShares ESG MSCI is expected to generate 0.3 times more return on investment than ABIVAX Socit. However, iShares ESG MSCI is 3.34 times less risky than ABIVAX Socit. It trades about 0.11 of its potential returns per unit of risk. ABIVAX Socit Anonyme is currently generating about -0.02 per unit of risk. If you would invest  4,562  in iShares ESG MSCI on December 29, 2024 and sell it today you would earn a total of  300.00  from holding iShares ESG MSCI or generate 6.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

iShares ESG MSCI  vs.  ABIVAX Socit Anonyme

iShares ESG MSCI

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in iShares ESG MSCI are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, IShares ESG may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 IShares ESG and ABIVAX Socit

The main advantage of trading using opposite IShares ESG and ABIVAX Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG 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 iShares ESG MSCI 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.