Correlation Between Genfit and Jutal Offshore

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

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

Diversification Opportunities for Genfit and Jutal Offshore

0.34

Correlation Coefficient

Genfit  Jutal Offshore

Weak diversification

The 3 months correlation between Genfit and Jutal is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil 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 Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of Genfit i.e., Genfit and Jutal Offshore go up and down completely randomly.

Pair Corralation between Genfit and Jutal Offshore

Given the investment horizon of 90 days Genfit is expected to under-perform the Jutal Offshore. In addition to that, Genfit is 1.82 times more volatile than Jutal Offshore Oil. It trades about -0.01 of its total potential returns per unit of risk. Jutal Offshore Oil is currently generating about 0.11 per unit of volatility. If you would invest  1,624  in Jutal Offshore Oil on September 15, 2024 and sell it today you would earn a total of  281.00  from holding Jutal Offshore Oil or generate 17.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Genfit  vs.  Jutal Offshore Oil

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.

Jutal Offshore Oil

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jutal Offshore Oil are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Jutal Offshore showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genfit and Jutal Offshore

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

The idea behind Genfit and Jutal Offshore Oil 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.