Correlation Between ABIVAX Socit and Aston Martin

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

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

Diversification Opportunities for ABIVAX Socit and Aston Martin

-0.42

Correlation Coefficient

ABIVAX Socit  Aston Martin

Very good diversification

The 3 months correlation between ABIVAX and Aston is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ABIVAX Socit Anonyme and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda and ABIVAX Socit 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 ABIVAX Socit Anonyme are associated (or correlated) with Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of ABIVAX Socit i.e., ABIVAX Socit and Aston Martin go up and down completely randomly.

Pair Corralation between ABIVAX Socit and Aston Martin

If you would invest  1,095  in ABIVAX Socit Anonyme on January 20, 2024 and sell it today you would earn a total of  0.00  from holding ABIVAX Socit Anonyme or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

ABIVAX Socit Anonyme  vs.  Aston Martin Lagonda

ABIVAX Socit Anonyme

Risk-Adjusted Performance

0 of 100

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.

Aston Martin Lagonda

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aston Martin Lagonda has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ABIVAX Socit and Aston Martin

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

The idea behind ABIVAX Socit Anonyme and Aston Martin Lagonda 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.