Correlation Between Artisan Partners and Genfit

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

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

Diversification Opportunities for Artisan Partners and Genfit

0.61

Correlation Coefficient

Artisan Partners  Genfit

Poor diversification

The 3 months correlation between Artisan and Genfit is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Artisan Partners 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 Artisan Partners Asset 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 Artisan Partners i.e., Artisan Partners and Genfit go up and down completely randomly.

Pair Corralation between Artisan Partners and Genfit

Given the investment horizon of 90 days Artisan Partners Asset is expected to under-perform the Genfit. But the stock apears to be less risky and, when comparing its historical volatility, Artisan Partners Asset is 1.87 times less risky than Genfit. The stock trades about -0.03 of its potential returns per unit of risk. The Genfit is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  369.00  in Genfit on December 29, 2024 and sell it today you would lose (2.00) from holding Genfit or give up 0.54% of portfolio value over 90 days.

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

Artisan Partners Asset  vs.  Genfit

Artisan Partners Asset

Risk-Adjusted Performance

Very Weak

Over the last 90 days Artisan Partners Asset has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Artisan Partners is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Genfit

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genfit are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Genfit is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Artisan Partners and Genfit

The main advantage of trading using opposite Artisan Partners and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners 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 Artisan Partners Asset 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.