Correlation Between Genfit and I Mab

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

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

Diversification Opportunities for Genfit and I Mab

0.7

Correlation Coefficient

Genfit  I Mab

Poor diversification

The 3 months correlation between Genfit and IMAB is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and I Mab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Mab 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 I Mab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Mab has no effect on the direction of Genfit i.e., Genfit and I Mab go up and down completely randomly.

Pair Corralation between Genfit and I Mab

Given the investment horizon of 90 days Genfit is expected to generate 0.75 times more return on investment than I Mab. However, Genfit is 1.34 times less risky than I Mab. It trades about 0.02 of its potential returns per unit of risk. I Mab is currently generating about -0.03 per unit of risk. If you would invest  395.00  in Genfit on September 13, 2024 and sell it today you would lose (13.12) from holding Genfit or give up 3.32% of portfolio value over 90 days.

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

Genfit  vs.  I Mab

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 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.

I Mab

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days I Mab has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, I Mab is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Genfit and I Mab

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

The idea behind Genfit and I Mab 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..