Correlation Between Nanobiotix and Malteries Franco

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

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

Diversification Opportunities for Nanobiotix and Malteries Franco

-0.83

Correlation Coefficient

Nanobiotix  Malteries Franco

Pay attention - limited upside

The 3 months correlation between Nanobiotix and Malteries is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Nanobiotix SA and Malteries Franco Belges Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malteries Franco Belges and Nanobiotix 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 Nanobiotix SA are associated (or correlated) with Malteries Franco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malteries Franco Belges has no effect on the direction of Nanobiotix i.e., Nanobiotix and Malteries Franco go up and down completely randomly.

Pair Corralation between Nanobiotix and Malteries Franco

Assuming the 90 days trading horizon Nanobiotix is expected to generate 1.53 times less return on investment than Malteries Franco. In addition to that, Nanobiotix is 2.1 times more volatile than Malteries Franco Belges Socit. It trades about 0.12 of its total potential returns per unit of risk. Malteries Franco Belges Socit is currently generating about 0.38 per unit of volatility. If you would invest  74,000  in Malteries Franco Belges Socit on October 5, 2024 and sell it today you would earn a total of  10,500  from holding Malteries Franco Belges Socit or generate 14.19% return on investment over 90 days.

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

Nanobiotix SA  vs.  Malteries Franco Belges Socit

Nanobiotix SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nanobiotix SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Malteries Franco Belges

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Malteries Franco Belges Socit are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Malteries Franco sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nanobiotix and Malteries Franco

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

The idea behind Nanobiotix SA and Malteries Franco Belges Socit 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.