Correlation Between Genfit and G III

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

By analyzing existing cross correlation between Genfit and G III Apparel Group, you can compare the effects of market volatilities on Genfit and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and G III.

Diversification Opportunities for Genfit and G III

-0.45

Correlation Coefficient

Genfit  G III

Very good diversification

The 3 months correlation between Genfit and GIII is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Genfit i.e., Genfit and G III go up and down completely randomly.

Pair Corralation between Genfit and G III

Given the investment horizon of 90 days Genfit is expected to generate 1.07 times more return on investment than G III. However, Genfit is 1.07 times more volatile than G III Apparel Group. It trades about -0.1 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.23 per unit of risk. If you would invest  383.00  in Genfit on October 12, 2024 and sell it today you would lose (16.00) from holding Genfit or give up 4.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Genfit  vs.  G III Apparel Group

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.

G III Apparel

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in G III Apparel Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, G III may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Genfit and G III

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

The idea behind Genfit and G III Apparel Group 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.