Correlation Between Biophytis and Sensorion

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

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

Diversification Opportunities for Biophytis and Sensorion

-0.24

Correlation Coefficient

Biophytis  Sensorion

Very good diversification

The 3 months correlation between Biophytis and Sensorion is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Biophytis SA and Sensorion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensorion SA and Biophytis 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 Biophytis SA are associated (or correlated) with Sensorion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensorion SA has no effect on the direction of Biophytis i.e., Biophytis and Sensorion go up and down completely randomly.

Pair Corralation between Biophytis and Sensorion

Assuming the 90 days trading horizon Biophytis SA is expected to under-perform the Sensorion. But the stock apears to be less risky and, when comparing its historical volatility, Biophytis SA is 3.44 times less risky than Sensorion. The stock trades about -0.06 of its potential returns per unit of risk. The Sensorion SA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  21.00  in Sensorion SA on April 25, 2025 and sell it today you would earn a total of  12.00  from holding Sensorion SA or generate 57.14% return on investment over 90 days.

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

Biophytis SA  vs.  Sensorion SA

Biophytis SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Biophytis SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Sensorion SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sensorion SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Sensorion reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Biophytis and Sensorion

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

The idea behind Biophytis SA and Sensorion 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.