Correlation Between Erytech Pharma and Genfit

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

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

Diversification Opportunities for Erytech Pharma and Genfit

0.0

Correlation Coefficient

Erytech Pharma  Genfit

Pay attention - limited upside

The 3 months correlation between Erytech and Genfit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Erytech Pharma SA and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Erytech Pharma 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 Erytech Pharma SA 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 Erytech Pharma i.e., Erytech Pharma and Genfit go up and down completely randomly.

Pair Corralation between Erytech Pharma and Genfit

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	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Erytech Pharma SA  vs.  Genfit

Erytech Pharma SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Erytech Pharma SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Erytech Pharma is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail 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 Erytech Pharma and Genfit

The main advantage of trading using opposite Erytech Pharma and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erytech Pharma 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 Erytech Pharma SA 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.