Correlation Between Cyteir Therapeutics and Genfit

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

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

Diversification Opportunities for Cyteir Therapeutics and Genfit

-0.44

Correlation Coefficient

Cyteir Therapeutics  Genfit

Very good diversification

The 3 months correlation between Cyteir and Genfit is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cyteir Therapeutics and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Cyteir 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 Cyteir Therapeutics 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 Cyteir Therapeutics i.e., Cyteir Therapeutics and Genfit go up and down completely randomly.

Pair Corralation between Cyteir Therapeutics and Genfit

If you would invest  375.00  in Genfit on September 24, 2024 and sell it today you would earn a total of  5.00  from holding Genfit or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.79%
Values	Daily Returns

Cyteir Therapeutics  vs.  Genfit

Cyteir Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyteir Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cyteir Therapeutics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cyteir Therapeutics and Genfit

The main advantage of trading using opposite Cyteir Therapeutics and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyteir 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 Cyteir Therapeutics 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.