Correlation Between Genfit and Cyteir Therapeutics

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

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

Diversification Opportunities for Genfit and Cyteir Therapeutics

-0.35

Correlation Coefficient

Genfit  Cyteir Therapeutics

Very good diversification

The 3 months correlation between Genfit and Cyteir is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Cyteir Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyteir Therapeutics 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 Cyteir Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyteir Therapeutics has no effect on the direction of Genfit i.e., Genfit and Cyteir Therapeutics go up and down completely randomly.

Pair Corralation between Genfit and Cyteir Therapeutics

If you would invest  276.00  in Cyteir Therapeutics on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Cyteir Therapeutics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Genfit  vs.  Cyteir Therapeutics

Genfit

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genfit are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Genfit may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Cyteir Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyteir Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cyteir Therapeutics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Genfit and Cyteir Therapeutics

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

The idea behind Genfit and Cyteir Therapeutics 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.