Correlation Between Apogee Therapeutics, and Genfit

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

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

Diversification Opportunities for Apogee Therapeutics, and Genfit

0.67

Correlation Coefficient

Apogee Therapeutics,  Genfit

Poor diversification

The 3 months correlation between Apogee and Genfit is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Therapeutics, Common and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Apogee Therapeutics, 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 Apogee Therapeutics, Common 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 Apogee Therapeutics, i.e., Apogee Therapeutics, and Genfit go up and down completely randomly.

Pair Corralation between Apogee Therapeutics, and Genfit

Given the investment horizon of 90 days Apogee Therapeutics, Common is expected to under-perform the Genfit. But the stock apears to be less risky and, when comparing its historical volatility, Apogee Therapeutics, Common is 1.08 times less risky than Genfit. The stock trades about -0.04 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  414.00  in Genfit on September 14, 2024 and sell it today you would lose (31.00) from holding Genfit or give up 7.49% of portfolio value over 90 days.

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

Apogee Therapeutics, Common  vs.  Genfit

Apogee Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Genfit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genfit has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Apogee Therapeutics, and Genfit

The main advantage of trading using opposite Apogee Therapeutics, and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Therapeutics, 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 Apogee Therapeutics, Common 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..