Correlation Between Abivax SA and Lotus Technology
Can any of the company-specific risk be diversified away by investing in both Abivax SA and Lotus Technology 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 SA and Lotus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abivax SA American and Lotus Technology American, you can compare the effects of market volatilities on Abivax SA and Lotus Technology 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 SA with a short position of Lotus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abivax SA and Lotus Technology.
Diversification Opportunities for Abivax SA and Lotus Technology
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Abivax and Lotus is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Abivax SA American and Lotus Technology American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Technology American and Abivax SA 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 SA American are associated (or correlated) with Lotus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Technology American has no effect on the direction of Abivax SA i.e., Abivax SA and Lotus Technology go up and down completely randomly.
Pair Corralation between Abivax SA and Lotus Technology
Given the investment horizon of 90 days Abivax SA American is expected to generate 0.71 times more return on investment than Lotus Technology. However, Abivax SA American is 1.42 times less risky than Lotus Technology. It trades about 0.24 of its potential returns per unit of risk. Lotus Technology American is currently generating about -0.12 per unit of risk. If you would invest 8,587 in Abivax SA American on September 13, 2025 and sell it today you would earn a total of 4,722 from holding Abivax SA American or generate 54.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abivax SA American vs. Lotus Technology American
Performance |
| Timeline |
| Abivax SA American |
| Lotus Technology American |
Abivax SA and Lotus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abivax SA and Lotus Technology
The main advantage of trading using opposite Abivax SA and Lotus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abivax SA position performs unexpectedly, Lotus Technology 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 Lotus Technology will offset losses from the drop in Lotus Technology's long position.| Abivax SA vs. Rhythm Pharmaceuticals | Abivax SA vs. Merus BV | Abivax SA vs. Cytokinetics | Abivax SA vs. Axsome Therapeutics |
| Lotus Technology vs. Canada Goose Holdings | Lotus Technology vs. LiveWire Group | Lotus Technology vs. Polestar Automotive Holding | Lotus Technology vs. La Z Boy Incorporated |
Check out your portfolio center.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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |