Correlation Between Cellectis and Gensight Biologics
Can any of the company-specific risk be diversified away by investing in both Cellectis and Gensight Biologics 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 Cellectis and Gensight Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellectis and Gensight Biologics SA, you can compare the effects of market volatilities on Cellectis and Gensight Biologics 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 Cellectis with a short position of Gensight Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellectis and Gensight Biologics.
Diversification Opportunities for Cellectis and Gensight Biologics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cellectis and Gensight is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cellectis and Gensight Biologics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gensight Biologics and Cellectis 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 Cellectis are associated (or correlated) with Gensight Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gensight Biologics has no effect on the direction of Cellectis i.e., Cellectis and Gensight Biologics go up and down completely randomly.
Pair Corralation between Cellectis and Gensight Biologics
Assuming the 90 days trading horizon Cellectis is expected to generate 0.47 times more return on investment than Gensight Biologics. However, Cellectis is 2.11 times less risky than Gensight Biologics. It trades about -0.08 of its potential returns per unit of risk. Gensight Biologics SA is currently generating about -0.04 per unit of risk. If you would invest 202.00 in Cellectis on September 14, 2024 and sell it today you would lose (25.00) from holding Cellectis or give up 12.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cellectis vs. Gensight Biologics SA
Performance |
Timeline |
Cellectis |
Gensight Biologics |
Cellectis and Gensight Biologics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cellectis and Gensight Biologics
The main advantage of trading using opposite Cellectis and Gensight Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellectis position performs unexpectedly, Gensight Biologics 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 Gensight Biologics will offset losses from the drop in Gensight Biologics' long position.Cellectis vs. Gensight Biologics SA | Cellectis vs. Innate Pharma | Cellectis vs. Poxel SA | Cellectis vs. Nanobiotix SA |
Gensight Biologics vs. DBV Technologies SA | Gensight Biologics vs. Inventiva SA | Gensight Biologics vs. Quantum Genomics SA | Gensight Biologics vs. Abivax SA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Global Correlations Find global opportunities by holding instruments from different markets |