Correlation Between Biophytis and Genfit

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

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

Diversification Opportunities for Biophytis and Genfit

0.0

Correlation Coefficient

Biophytis  Genfit

Pay attention - limited upside

The 3 months correlation between Biophytis and Genfit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biophytis SA and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Biophytis i.e., Biophytis and Genfit go up and down completely randomly.

Pair Corralation between Biophytis and Genfit

Assuming the 90 days trading horizon Biophytis SA is expected to generate 3.09 times more return on investment than Genfit. However, Biophytis is 3.09 times more volatile than Genfit. It trades about 0.04 of its potential returns per unit of risk. Genfit is currently generating about -0.07 per unit of risk. If you would invest  30.00  in Biophytis SA on December 2, 2024 and sell it today you would earn a total of  1.00  from holding Biophytis SA or generate 3.33% return on investment over 90 days.

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

Biophytis SA  vs.  Genfit

Biophytis SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Biophytis SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Biophytis reported solid returns over the last few months and may actually be approaching a breakup point.

Genfit

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genfit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Biophytis and Genfit

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

The idea behind Biophytis SA and Genfit 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.