Correlation Between Genfit and 83001WAC8

Can any of the company-specific risk be diversified away by investing in both Genfit and 83001WAC8 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 83001WAC8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genfit and Six Flags Theme, you can compare the effects of market volatilities on Genfit and 83001WAC8 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 83001WAC8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and 83001WAC8.

Diversification Opportunities for Genfit and 83001WAC8

-0.22

Correlation Coefficient

Genfit  83001WAC8

Very good diversification

The 3 months correlation between Genfit and 83001WAC8 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Six Flags Theme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Theme 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 83001WAC8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Theme has no effect on the direction of Genfit i.e., Genfit and 83001WAC8 go up and down completely randomly.

Pair Corralation between Genfit and 83001WAC8

Given the investment horizon of 90 days Genfit is expected to under-perform the 83001WAC8. In addition to that, Genfit is 4.84 times more volatile than Six Flags Theme. It trades about -0.25 of its total potential returns per unit of risk. Six Flags Theme is currently generating about 0.41 per unit of volatility. If you would invest  10,011  in Six Flags Theme on September 25, 2024 and sell it today you would earn a total of  161.00  from holding Six Flags Theme or generate 1.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	45.0%
Values	Daily Returns

Genfit  vs.  Six Flags Theme

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Six Flags Theme

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Six Flags Theme are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 83001WAC8 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Genfit and 83001WAC8

The main advantage of trading using opposite Genfit and 83001WAC8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, 83001WAC8 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 83001WAC8 will offset losses from the drop in 83001WAC8's long position.

The idea behind Genfit and Six Flags Theme 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.