Correlation Between Silo Pharma and Inventiva

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

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

Diversification Opportunities for Silo Pharma and Inventiva

0.13

Correlation Coefficient

Silo Pharma  Inventiva

Average diversification

The 3 months correlation between Silo and Inventiva is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Silo Pharma and Inventiva Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva Sa and Silo Pharma 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 Silo Pharma are associated (or correlated) with Inventiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventiva Sa has no effect on the direction of Silo Pharma i.e., Silo Pharma and Inventiva go up and down completely randomly.

Pair Corralation between Silo Pharma and Inventiva

Given the investment horizon of 90 days Silo Pharma is expected to under-perform the Inventiva. But the otc stock apears to be less risky and, when comparing its historical volatility, Silo Pharma is 1.35 times less risky than Inventiva. The otc stock trades about -0.01 of its potential returns per unit of risk. The Inventiva Sa is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  233.00  in Inventiva Sa on September 2, 2024 and sell it today you would earn a total of  32.00  from holding Inventiva Sa or generate 13.73% return on investment over 90 days.

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

Silo Pharma  vs.  Inventiva Sa

Silo Pharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Silo Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Silo Pharma is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Inventiva Sa

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inventiva Sa are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Inventiva sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silo Pharma and Inventiva

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

The idea behind Silo Pharma and Inventiva Sa 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..