Correlation Between DBV Technologies and Groupe Sfpi

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

By analyzing existing cross correlation between DBV Technologies SA and Groupe Sfpi, you can compare the effects of market volatilities on DBV Technologies and Groupe Sfpi 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 Groupe Sfpi. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBV Technologies and Groupe Sfpi.

Diversification Opportunities for DBV Technologies and Groupe Sfpi

-0.02

Correlation Coefficient

DBV Technologies  Groupe Sfpi

Good diversification

The 3 months correlation between DBV and Groupe is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DBV Technologies SA and Groupe Sfpi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Sfpi 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 SA are associated (or correlated) with Groupe Sfpi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Sfpi has no effect on the direction of DBV Technologies i.e., DBV Technologies and Groupe Sfpi go up and down completely randomly.

Pair Corralation between DBV Technologies and Groupe Sfpi

Assuming the 90 days trading horizon DBV Technologies is expected to generate 1.9 times less return on investment than Groupe Sfpi. In addition to that, DBV Technologies is 3.07 times more volatile than Groupe Sfpi. It trades about 0.03 of its total potential returns per unit of risk. Groupe Sfpi is currently generating about 0.17 per unit of volatility. If you would invest  198.00  in Groupe Sfpi on April 24, 2025 and sell it today you would earn a total of  39.00  from holding Groupe Sfpi or generate 19.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

DBV Technologies SA  vs.  Groupe Sfpi

DBV Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DBV Technologies SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, DBV Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Groupe Sfpi

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Sfpi are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Groupe Sfpi sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DBV Technologies and Groupe Sfpi

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

The idea behind DBV Technologies SA and Groupe Sfpi 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.