Correlation Between Jutal Offshore and Genfit

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

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

Diversification Opportunities for Jutal Offshore and Genfit

0.34

Correlation Coefficient

Jutal Offshore  Genfit

Weak diversification

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

Pair Corralation between Jutal Offshore and Genfit

Assuming the 90 days horizon Jutal Offshore Oil is expected to generate 0.03 times more return on investment than Genfit. However, Jutal Offshore Oil is 31.9 times less risky than Genfit. It trades about -0.21 of its potential returns per unit of risk. Genfit is currently generating about -0.45 per unit of risk. If you would invest  1,910  in Jutal Offshore Oil on September 15, 2024 and sell it today you would lose (5.00) from holding Jutal Offshore Oil or give up 0.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Jutal Offshore Oil  vs.  Genfit

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.

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.

Pair Trading with Jutal Offshore and Genfit

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

The idea behind Jutal Offshore Oil and Genfit 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.