Correlation Between Genfit and Immutep

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

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

Diversification Opportunities for Genfit and Immutep

-0.37

Correlation Coefficient

Genfit  Immutep

Very good diversification

The 3 months correlation between Genfit and Immutep is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR 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 Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of Genfit i.e., Genfit and Immutep go up and down completely randomly.

Pair Corralation between Genfit and Immutep

Given the investment horizon of 90 days Genfit is expected to under-perform the Immutep. But the stock apears to be less risky and, when comparing its historical volatility, Genfit is 2.6 times less risky than Immutep. The stock trades about -0.43 of its potential returns per unit of risk. The Immutep Ltd ADR is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  205.00  in Immutep Ltd ADR on September 16, 2024 and sell it today you would earn a total of  13.00  from holding Immutep Ltd ADR or generate 6.34% return on investment over 90 days.

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

Genfit  vs.  Immutep Ltd ADR

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.

Immutep Ltd ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immutep Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Immutep is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Genfit and Immutep

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

The idea behind Genfit and Immutep Ltd ADR 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.