Correlation Between DBV Technologies and Larimar Therapeutics
Can any of the company-specific risk be diversified away by investing in both DBV Technologies and Larimar Therapeutics 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 DBV Technologies and Larimar Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBV Technologies and Larimar Therapeutics, you can compare the effects of market volatilities on DBV Technologies and Larimar Therapeutics 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 DBV Technologies with a short position of Larimar Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBV Technologies and Larimar Therapeutics.
Diversification Opportunities for DBV Technologies and Larimar Therapeutics
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DBV and Larimar is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding DBV Technologies and Larimar Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Larimar Therapeutics and DBV Technologies 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 DBV Technologies are associated (or correlated) with Larimar Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Larimar Therapeutics has no effect on the direction of DBV Technologies i.e., DBV Technologies and Larimar Therapeutics go up and down completely randomly.
Pair Corralation between DBV Technologies and Larimar Therapeutics
Given the investment horizon of 90 days DBV Technologies is expected to generate 0.63 times more return on investment than Larimar Therapeutics. However, DBV Technologies is 1.6 times less risky than Larimar Therapeutics. It trades about 0.13 of its potential returns per unit of risk. Larimar Therapeutics is currently generating about 0.02 per unit of risk. If you would invest 980.00 in DBV Technologies on August 20, 2025 and sell it today you would earn a total of 368.00 from holding DBV Technologies or generate 37.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBV Technologies vs. Larimar Therapeutics
Performance |
| Timeline |
| DBV Technologies |
| Larimar Therapeutics |
DBV Technologies and Larimar Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBV Technologies and Larimar Therapeutics
The main advantage of trading using opposite DBV Technologies and Larimar Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBV Technologies position performs unexpectedly, Larimar Therapeutics 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 Larimar Therapeutics will offset losses from the drop in Larimar Therapeutics' long position.| DBV Technologies vs. Larimar Therapeutics | DBV Technologies vs. Annexon | DBV Technologies vs. Altimmune | DBV Technologies vs. Frequency Therapeutics |
| Larimar Therapeutics vs. enGene Holdings Common | Larimar Therapeutics vs. Annexon | Larimar Therapeutics vs. DBV Technologies | Larimar Therapeutics vs. Amarin PLC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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