Correlation Between Inventiva and Stardust Power

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

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

Diversification Opportunities for Inventiva and Stardust Power

0.12

Correlation Coefficient

Inventiva  Stardust Power

Average diversification

The 3 months correlation between Inventiva and Stardust is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Inventiva Sa and Stardust Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stardust Power and Inventiva 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 Inventiva Sa are associated (or correlated) with Stardust Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stardust Power has no effect on the direction of Inventiva i.e., Inventiva and Stardust Power go up and down completely randomly.

Pair Corralation between Inventiva and Stardust Power

Considering the 90-day investment horizon Inventiva is expected to generate 4.16 times less return on investment than Stardust Power. But when comparing it to its historical volatility, Inventiva Sa is 2.36 times less risky than Stardust Power. It trades about 0.1 of its potential returns per unit of risk. Stardust Power is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  7.50  in Stardust Power on August 5, 2025 and sell it today you would earn a total of  11.50  from holding Stardust Power or generate 153.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Inventiva Sa  vs.  Stardust Power

Inventiva Sa

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Inventiva Sa are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Inventiva sustained solid returns over the last few months and may actually be approaching a breakup point.

Stardust Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stardust Power are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Stardust Power showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inventiva and Stardust Power

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

The idea behind Inventiva Sa and Stardust Power 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.