Correlation Between NeuBase Therapeutics and Genfit

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

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

Diversification Opportunities for NeuBase Therapeutics and Genfit

0.3

Correlation Coefficient

NeuBase Therapeutics  Genfit

Weak diversification

The 3 months correlation between NeuBase and Genfit is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding NeuBase Therapeutics and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and NeuBase Therapeutics 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 NeuBase Therapeutics 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 NeuBase Therapeutics i.e., NeuBase Therapeutics and Genfit go up and down completely randomly.

Pair Corralation between NeuBase Therapeutics and Genfit

If you would invest  410.00  in Genfit on September 3, 2024 and sell it today you would earn a total of  11.00  from holding Genfit or generate 2.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

NeuBase Therapeutics  vs.  Genfit

NeuBase Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NeuBase Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, NeuBase Therapeutics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 January 2025.

Pair Trading with NeuBase Therapeutics and Genfit

The main advantage of trading using opposite NeuBase Therapeutics and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeuBase Therapeutics 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 NeuBase Therapeutics 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.