Correlation Between CFM Indosuez and Genfit

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

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

Diversification Opportunities for CFM Indosuez and Genfit

0.0

Correlation Coefficient

CFM Indosuez  Genfit

Pay attention - limited upside

The 3 months correlation between CFM and Genfit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CFM Indosuez Wealth and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and CFM Indosuez 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 CFM Indosuez Wealth 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 CFM Indosuez i.e., CFM Indosuez and Genfit go up and down completely randomly.

Pair Corralation between CFM Indosuez and Genfit

Assuming the 90 days trading horizon CFM Indosuez Wealth is expected to generate 1.33 times more return on investment than Genfit. However, CFM Indosuez is 1.33 times more volatile than Genfit. It trades about 0.06 of its potential returns per unit of risk. Genfit is currently generating about -0.02 per unit of risk. If you would invest  117,000  in CFM Indosuez Wealth on December 30, 2024 and sell it today you would earn a total of  8,000  from holding CFM Indosuez Wealth or generate 6.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CFM Indosuez Wealth  vs.  Genfit

CFM Indosuez Wealth

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CFM Indosuez Wealth are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, CFM Indosuez may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Genfit

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genfit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Genfit is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CFM Indosuez and Genfit

The main advantage of trading using opposite CFM Indosuez and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFM Indosuez 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 CFM Indosuez Wealth 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.