Correlation Between WEBTOON Entertainment and Genfit

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

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

Diversification Opportunities for WEBTOON Entertainment and Genfit

0.21

Correlation Coefficient

WEBTOON Entertainment  Genfit

Modest diversification

The 3 months correlation between WEBTOON and Genfit is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding WEBTOON Entertainment Common and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and WEBTOON Entertainment 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 WEBTOON Entertainment Common 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 WEBTOON Entertainment i.e., WEBTOON Entertainment and Genfit go up and down completely randomly.

Pair Corralation between WEBTOON Entertainment and Genfit

Given the investment horizon of 90 days WEBTOON Entertainment Common is expected to under-perform the Genfit. In addition to that, WEBTOON Entertainment is 1.1 times more volatile than Genfit. It trades about -0.16 of its total potential returns per unit of risk. Genfit is currently generating about -0.01 per unit of volatility. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

WEBTOON Entertainment Common  vs.  Genfit

WEBTOON Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days WEBTOON Entertainment Common 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm 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 WEBTOON Entertainment and Genfit

The main advantage of trading using opposite WEBTOON Entertainment and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBTOON Entertainment 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 WEBTOON Entertainment Common 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..