Correlation Between RadNet and Genfit

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

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

Diversification Opportunities for RadNet and Genfit

0.43

Correlation Coefficient

RadNet  Genfit

Very weak diversification

The 3 months correlation between RadNet and Genfit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and RadNet 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 RadNet Inc 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 RadNet i.e., RadNet and Genfit go up and down completely randomly.

Pair Corralation between RadNet and Genfit

Given the investment horizon of 90 days RadNet Inc is expected to under-perform the Genfit. But the stock apears to be less risky and, when comparing its historical volatility, RadNet Inc is 1.19 times less risky than Genfit. The stock trades about -0.2 of its potential returns per unit of risk. The Genfit is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  380.00  in Genfit on December 20, 2024 and sell it today you would lose (19.00) from holding Genfit or give up 5.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

RadNet Inc  vs.  Genfit

RadNet Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days RadNet Inc 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 basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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. In spite of comparatively stable technical and fundamental indicators, Genfit is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with RadNet and Genfit

The main advantage of trading using opposite RadNet and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet 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 RadNet Inc 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.