Correlation Between Oxford BioDynamics and ABIVAX Socit

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

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

Diversification Opportunities for Oxford BioDynamics and ABIVAX Socit

-0.02

Correlation Coefficient

Oxford BioDynamics  ABIVAX Socit

Good diversification

The 3 months correlation between Oxford and ABIVAX is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Oxford BioDynamics Plc 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 Oxford BioDynamics 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 Oxford BioDynamics Plc 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 Oxford BioDynamics i.e., Oxford BioDynamics and ABIVAX Socit go up and down completely randomly.

Pair Corralation between Oxford BioDynamics and ABIVAX Socit

Assuming the 90 days horizon Oxford BioDynamics Plc is expected to under-perform the ABIVAX Socit. In addition to that, Oxford BioDynamics is 2.35 times more volatile than ABIVAX Socit Anonyme. It trades about -0.13 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 29, 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 Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Oxford BioDynamics Plc  vs.  ABIVAX Socit Anonyme

Oxford BioDynamics Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oxford BioDynamics Plc 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 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 Oxford BioDynamics and ABIVAX Socit

The main advantage of trading using opposite Oxford BioDynamics and ABIVAX Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford BioDynamics 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 Oxford BioDynamics Plc 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.