Correlation Between TRACON Pharmaceuticals and Genfit
Can any of the company-specific risk be diversified away by investing in both TRACON Pharmaceuticals 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 TRACON Pharmaceuticals and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRACON Pharmaceuticals and Genfit, you can compare the effects of market volatilities on TRACON Pharmaceuticals 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 TRACON Pharmaceuticals with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRACON Pharmaceuticals and Genfit.
Diversification Opportunities for TRACON Pharmaceuticals and Genfit
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TRACON and Genfit is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding TRACON Pharmaceuticals and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and TRACON Pharmaceuticals 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 TRACON Pharmaceuticals 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 TRACON Pharmaceuticals i.e., TRACON Pharmaceuticals and Genfit go up and down completely randomly.
Pair Corralation between TRACON Pharmaceuticals and Genfit
Given the investment horizon of 90 days TRACON Pharmaceuticals is expected to generate 1.48 times more return on investment than Genfit. However, TRACON Pharmaceuticals is 1.48 times more volatile than Genfit. It trades about 0.42 of its potential returns per unit of risk. Genfit is currently generating about 0.02 per unit of risk. If you would invest 145.00 in TRACON Pharmaceuticals on September 24, 2024 and sell it today you would earn a total of 15.00 from holding TRACON Pharmaceuticals or generate 10.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 3.15% |
Values | Daily Returns |
TRACON Pharmaceuticals vs. Genfit
Performance |
Timeline |
TRACON Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genfit |
TRACON Pharmaceuticals and Genfit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TRACON Pharmaceuticals and Genfit
The main advantage of trading using opposite TRACON Pharmaceuticals and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRACON Pharmaceuticals 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.TRACON Pharmaceuticals vs. Rezolute | TRACON Pharmaceuticals vs. XOMA Corp | TRACON Pharmaceuticals vs. Vincerx Pharma | TRACON Pharmaceuticals vs. Histogen |
Genfit vs. Fate Therapeutics | Genfit vs. Sana Biotechnology | Genfit vs. Caribou Biosciences | Genfit vs. Arcus Biosciences |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
CEOs Directory Screen CEOs from public companies around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |