Correlation Between Genfit and Y MAbs
Can any of the company-specific risk be diversified away by investing in both Genfit and Y MAbs 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 Y MAbs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Y mAbs Therapeutics, you can compare the effects of market volatilities on Genfit and Y MAbs 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 Y MAbs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Y MAbs.
Diversification Opportunities for Genfit and Y MAbs
Poor diversification
The 3 months correlation between Genfit and YMAB is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Y mAbs Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y mAbs Therapeutics 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 Y MAbs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y mAbs Therapeutics has no effect on the direction of Genfit i.e., Genfit and Y MAbs go up and down completely randomly.
Pair Corralation between Genfit and Y MAbs
Given the investment horizon of 90 days Genfit is expected to under-perform the Y MAbs. But the stock apears to be less risky and, when comparing its historical volatility, Genfit is 1.46 times less risky than Y MAbs. The stock trades about -0.44 of its potential returns per unit of risk. The Y mAbs Therapeutics is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 1,318 in Y mAbs Therapeutics on September 14, 2024 and sell it today you would lose (341.00) from holding Y mAbs Therapeutics or give up 25.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Genfit vs. Y mAbs Therapeutics
Performance |
Timeline |
Genfit |
Y mAbs Therapeutics |
Genfit and Y MAbs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genfit and Y MAbs
The main advantage of trading using opposite Genfit and Y MAbs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Y MAbs 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 Y MAbs will offset losses from the drop in Y MAbs' long position.Genfit vs. Puma Biotechnology | Genfit vs. Iovance Biotherapeutics | Genfit vs. Sarepta Therapeutics | Genfit vs. Day One Biopharmaceuticals |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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