Correlation Between Genfit and Chemours

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

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

Diversification Opportunities for Genfit and Chemours

0.08

Correlation Coefficient

Genfit  Chemours

Significant diversification

The 3 months correlation between Genfit and Chemours is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Chemours Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemours and Genfit 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 Genfit are associated (or correlated) with Chemours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemours has no effect on the direction of Genfit i.e., Genfit and Chemours go up and down completely randomly.

Pair Corralation between Genfit and Chemours

Given the investment horizon of 90 days Genfit is expected to generate 1.44 times more return on investment than Chemours. However, Genfit is 1.44 times more volatile than Chemours Co. It trades about 0.03 of its potential returns per unit of risk. Chemours Co is currently generating about -0.05 per unit of risk. If you would invest  352.00  in Genfit on October 12, 2024 and sell it today you would earn a total of  15.00  from holding Genfit or generate 4.26% return on investment over 90 days.

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

Genfit  vs.  Chemours Co

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

Chemours

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Genfit and Chemours

The main advantage of trading using opposite Genfit and Chemours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Chemours 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 Chemours will offset losses from the drop in Chemours' long position.

The idea behind Genfit and Chemours Co 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.