Correlation Between Genfit and BBB Foods
Can any of the company-specific risk be diversified away by investing in both Genfit and BBB Foods 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 BBB Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and BBB Foods, you can compare the effects of market volatilities on Genfit and BBB Foods 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 BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and BBB Foods.
Diversification Opportunities for Genfit and BBB Foods
Modest diversification
The 3 months correlation between Genfit and BBB is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods 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 BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of Genfit i.e., Genfit and BBB Foods go up and down completely randomly.
Pair Corralation between Genfit and BBB Foods
Given the investment horizon of 90 days Genfit is expected to generate 1.5 times more return on investment than BBB Foods. However, Genfit is 1.5 times more volatile than BBB Foods. It trades about 0.0 of its potential returns per unit of risk. BBB Foods is currently generating about -0.09 per unit of risk. If you would invest 379.00 in Genfit on December 18, 2024 and sell it today you would lose (15.00) from holding Genfit or give up 3.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Genfit vs. BBB Foods
Performance |
Timeline |
Genfit |
BBB Foods |
Genfit and BBB Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genfit and BBB Foods
The main advantage of trading using opposite Genfit and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
BBB Foods vs. Braemar Hotels Resorts | BBB Foods vs. Treasury Wine Estates | BBB Foods vs. Pebblebrook Hotel Trust | BBB Foods vs. Brandywine Realty Trust |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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