Correlation Between Genfit and Aptorum Group

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

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

Diversification Opportunities for Genfit and Aptorum Group

-0.21

Correlation Coefficient

Genfit  Aptorum Group

Very good diversification

The 3 months correlation between Genfit and Aptorum is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Aptorum Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptorum Group and Genfit 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 Genfit are associated (or correlated) with Aptorum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptorum Group has no effect on the direction of Genfit i.e., Genfit and Aptorum Group go up and down completely randomly.

Pair Corralation between Genfit and Aptorum Group

Given the investment horizon of 90 days Genfit is expected to generate 0.48 times more return on investment than Aptorum Group. However, Genfit is 2.09 times less risky than Aptorum Group. It trades about 0.0 of its potential returns per unit of risk. Aptorum Group Ltd is currently generating about -0.17 per unit of risk. If you would invest  428.00  in Genfit on September 4, 2024 and sell it today you would lose (23.00) from holding Genfit or give up 5.37% of portfolio value over 90 days.

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

Genfit  vs.  Aptorum Group Ltd

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

Aptorum Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aptorum Group Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Genfit and Aptorum Group

The main advantage of trading using opposite Genfit and Aptorum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Aptorum Group 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 Aptorum Group will offset losses from the drop in Aptorum Group's long position.

The idea behind Genfit and Aptorum Group Ltd 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.