Correlation Between Genfit and 483007AL4

Can any of the company-specific risk be diversified away by investing in both Genfit and 483007AL4 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 483007AL4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genfit and US483007AL48, you can compare the effects of market volatilities on Genfit and 483007AL4 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 483007AL4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and 483007AL4.

Diversification Opportunities for Genfit and 483007AL4

0.46

Correlation Coefficient

Genfit  483007AL4

Very weak diversification

The 3 months correlation between Genfit and 483007AL4 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and US483007AL48 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US483007AL48 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 483007AL4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US483007AL48 has no effect on the direction of Genfit i.e., Genfit and 483007AL4 go up and down completely randomly.

Pair Corralation between Genfit and 483007AL4

Given the investment horizon of 90 days Genfit is expected to under-perform the 483007AL4. In addition to that, Genfit is 1.75 times more volatile than US483007AL48. It trades about -0.26 of its total potential returns per unit of risk. US483007AL48 is currently generating about -0.1 per unit of volatility. If you would invest  8,975  in US483007AL48 on October 11, 2024 and sell it today you would lose (875.00) from holding US483007AL48 or give up 9.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	91.8%
Values	Daily Returns

Genfit  vs.  US483007AL48

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.

US483007AL48

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US483007AL48 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for US483007AL48 investors.

Pair Trading with Genfit and 483007AL4

The main advantage of trading using opposite Genfit and 483007AL4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, 483007AL4 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 483007AL4 will offset losses from the drop in 483007AL4's long position.

The idea behind Genfit and US483007AL48 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.