Correlation Between X4 Pharmaceuticals and Genfit
Can any of the company-specific risk be diversified away by investing in both X4 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 X4 Pharmaceuticals and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X4 Pharmaceuticals and Genfit, you can compare the effects of market volatilities on X4 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 X4 Pharmaceuticals with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of X4 Pharmaceuticals and Genfit.
Diversification Opportunities for X4 Pharmaceuticals and Genfit
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between XFOR and Genfit is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding X4 Pharmaceuticals and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and X4 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 X4 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 X4 Pharmaceuticals i.e., X4 Pharmaceuticals and Genfit go up and down completely randomly.
Pair Corralation between X4 Pharmaceuticals and Genfit
Given the investment horizon of 90 days X4 Pharmaceuticals is expected to generate 5.54 times more return on investment than Genfit. However, X4 Pharmaceuticals is 5.54 times more volatile than Genfit. It trades about 0.27 of its potential returns per unit of risk. Genfit is currently generating about -0.31 per unit of risk. If you would invest 34.00 in X4 Pharmaceuticals on September 26, 2024 and sell it today you would earn a total of 24.00 from holding X4 Pharmaceuticals or generate 70.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
X4 Pharmaceuticals vs. Genfit
Performance |
Timeline |
X4 Pharmaceuticals |
Genfit |
X4 Pharmaceuticals and Genfit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with X4 Pharmaceuticals and Genfit
The main advantage of trading using opposite X4 Pharmaceuticals and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X4 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.X4 Pharmaceuticals vs. Fate Therapeutics | X4 Pharmaceuticals vs. Caribou Biosciences | X4 Pharmaceuticals vs. Karyopharm Therapeutics | X4 Pharmaceuticals vs. Hookipa Pharma |
Genfit vs. Fate Therapeutics | Genfit vs. Caribou Biosciences | Genfit vs. Karyopharm Therapeutics | Genfit vs. Hookipa Pharma |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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