Correlation Between 8426EPAF5 and Genfit

Can any of the company-specific risk be diversified away by investing in both 8426EPAF5 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 8426EPAF5 and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SO 515 15 SEP 32 and Genfit, you can compare the effects of market volatilities on 8426EPAF5 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 8426EPAF5 with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of 8426EPAF5 and Genfit.

Diversification Opportunities for 8426EPAF5 and Genfit

0.5

Correlation Coefficient

8426EPAF5  Genfit

Very weak diversification

The 3 months correlation between 8426EPAF5 and Genfit is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SO 515 15 SEP 32 and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and 8426EPAF5 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 SO 515 15 SEP 32 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 8426EPAF5 i.e., 8426EPAF5 and Genfit go up and down completely randomly.

Pair Corralation between 8426EPAF5 and Genfit

Assuming the 90 days trading horizon SO 515 15 SEP 32 is expected to generate 0.28 times more return on investment than Genfit. However, SO 515 15 SEP 32 is 3.61 times less risky than Genfit. It trades about -0.04 of its potential returns per unit of risk. Genfit is currently generating about -0.28 per unit of risk. If you would invest  10,152  in SO 515 15 SEP 32 on September 25, 2024 and sell it today you would lose (163.00) from holding SO 515 15 SEP 32 or give up 1.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

SO 515 15 SEP 32  vs.  Genfit

SO 515 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SO 515 15 SEP 32 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, 8426EPAF5 is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with 8426EPAF5 and Genfit

The main advantage of trading using opposite 8426EPAF5 and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 8426EPAF5 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 SO 515 15 SEP 32 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 Stocks Directory module to find actively traded stocks across global markets.