Correlation Between Genfit and Cec Resources

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

By analyzing existing cross correlation between Genfit and Cec Resources, you can compare the effects of market volatilities on Genfit and Cec Resources 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 Cec Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Cec Resources.

Diversification Opportunities for Genfit and Cec Resources

0.0

Correlation Coefficient

Genfit  Cec Resources

Pay attention - limited upside

The 3 months correlation between Genfit and Cec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Cec Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cec Resources 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 Cec Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cec Resources has no effect on the direction of Genfit i.e., Genfit and Cec Resources go up and down completely randomly.

Pair Corralation between Genfit and Cec Resources

If you would invest (100.00) in Cec Resources on September 21, 2024 and sell it today you would earn a total of  100.00  from holding Cec Resources or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Genfit  vs.  Cec Resources

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 uncertain 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.

Cec Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cec Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Cec Resources 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 Genfit and Cec Resources

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

The idea behind Genfit and Cec Resources 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.