Correlation Between GT Biopharma and ABIVAX Société

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

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

Diversification Opportunities for GT Biopharma and ABIVAX Société

-0.41

Correlation Coefficient

GT Biopharma  ABIVAX Société

Very good diversification

The 3 months correlation between GTBP and ABIVAX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding GT Biopharma 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 GT Biopharma 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 GT Biopharma 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 GT Biopharma i.e., GT Biopharma and ABIVAX Société go up and down completely randomly.

Pair Corralation between GT Biopharma and ABIVAX Société

If you would invest  1,515  in ABIVAX Socit Anonyme on March 28, 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	100.0%
Values	Daily Returns

GT Biopharma  vs.  ABIVAX Socit Anonyme

GT Biopharma

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GT Biopharma are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal fundamental drivers, GT Biopharma reported solid returns over the last few months and may actually be approaching a breakup point.

ABIVAX Socit Anonyme

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ABIVAX Socit Anonyme are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ABIVAX Société reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GT Biopharma and ABIVAX Société

The main advantage of trading using opposite GT Biopharma and ABIVAX Société positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Biopharma 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 GT Biopharma 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.