Correlation Between Artois Nom and Genfit

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

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

Diversification Opportunities for Artois Nom and Genfit

0.63

Correlation Coefficient

Artois Nom  Genfit

Poor diversification

The 3 months correlation between Artois and Genfit is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Artois Nom and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Artois Nom 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 Artois Nom 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 Artois Nom i.e., Artois Nom and Genfit go up and down completely randomly.

Pair Corralation between Artois Nom and Genfit

Assuming the 90 days trading horizon Artois Nom is expected to generate 2.3 times more return on investment than Genfit. However, Artois Nom is 2.3 times more volatile than Genfit. It trades about 0.13 of its potential returns per unit of risk. Genfit is currently generating about 0.02 per unit of risk. If you would invest  550,000  in Artois Nom on August 30, 2024 and sell it today you would earn a total of  405,000  from holding Artois Nom or generate 73.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Artois Nom  vs.  Genfit

Artois Nom

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artois Nom are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Artois Nom sustained solid returns over the last few months and may actually be approaching a breakup point.

Genfit

Risk-Adjusted Performance

1 of 100

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. Despite somewhat strong basic indicators, Genfit is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Artois Nom and Genfit

The main advantage of trading using opposite Artois Nom and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artois Nom 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 Artois Nom 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.