Correlation Between Alumis and DBV Technologies

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

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

Diversification Opportunities for Alumis and DBV Technologies

0.38

Correlation Coefficient

Alumis  DBV Technologies

Weak diversification

The 3 months correlation between Alumis and DBV is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Alumis Inc and DBV Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies and Alumis 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 Alumis Inc are associated (or correlated) with DBV Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBV Technologies has no effect on the direction of Alumis i.e., Alumis and DBV Technologies go up and down completely randomly.

Pair Corralation between Alumis and DBV Technologies

Given the investment horizon of 90 days Alumis is expected to generate 3.17 times less return on investment than DBV Technologies. But when comparing it to its historical volatility, Alumis Inc is 1.48 times less risky than DBV Technologies. It trades about 0.09 of its potential returns per unit of risk. DBV Technologies is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  881.00  in DBV Technologies on August 3, 2025 and sell it today you would earn a total of  583.00  from holding DBV Technologies or generate 66.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Alumis Inc  vs.  DBV Technologies

Alumis Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Alumis Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting primary indicators, Alumis unveiled solid returns over the last few months and may actually be approaching a breakup point.

DBV Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DBV Technologies are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, DBV Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alumis and DBV Technologies

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

The idea behind Alumis Inc and DBV Technologies 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 Commodity Directory module to find actively traded commodities issued by global exchanges.