Correlation Between LanzaTech Global and ABIVAX Société

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

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

Diversification Opportunities for LanzaTech Global and ABIVAX Société

0.02

Correlation Coefficient

LanzaTech Global  ABIVAX Société

Significant diversification

The 3 months correlation between LanzaTech and ABIVAX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding LanzaTech Global 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 LanzaTech Global 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 LanzaTech Global are associated (or correlated) with ABIVAX Société. 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 LanzaTech Global i.e., LanzaTech Global and ABIVAX Société go up and down completely randomly.

Pair Corralation between LanzaTech Global and ABIVAX Société

Given the investment horizon of 90 days LanzaTech Global is expected to generate 2.11 times more return on investment than ABIVAX Société. However, LanzaTech Global is 2.11 times more volatile than ABIVAX Socit Anonyme. It trades about -0.02 of its potential returns per unit of risk. ABIVAX Socit Anonyme is currently generating about -0.18 per unit of risk. If you would invest  124.00  in LanzaTech Global on November 28, 2024 and sell it today you would lose (40.28) from holding LanzaTech Global or give up 32.48% of portfolio value over 90 days.

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

LanzaTech Global  vs.  ABIVAX Socit Anonyme

LanzaTech Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days LanzaTech Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with LanzaTech Global and ABIVAX Société

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

The idea behind LanzaTech Global 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.