Correlation Between 89832QAD1 and Genfit

Can any of the company-specific risk be diversified away by investing in both 89832QAD1 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 89832QAD1 and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TFC 48 and Genfit, you can compare the effects of market volatilities on 89832QAD1 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 89832QAD1 with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of 89832QAD1 and Genfit.

Diversification Opportunities for 89832QAD1 and Genfit

0.36

Correlation Coefficient

89832QAD1  Genfit

Weak diversification

The 3 months correlation between 89832QAD1 and Genfit is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding TFC 48 and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and 89832QAD1 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 TFC 48 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 89832QAD1 i.e., 89832QAD1 and Genfit go up and down completely randomly.

Pair Corralation between 89832QAD1 and Genfit

Assuming the 90 days trading horizon TFC 48 is expected to under-perform the Genfit. But the bond apears to be less risky and, when comparing its historical volatility, TFC 48 is 3.39 times less risky than Genfit. The bond trades about -0.11 of its potential returns per unit of risk. The Genfit is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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 Together
Strength	Very Weak
Accuracy	95.31%
Values	Daily Returns

TFC 48  vs.  Genfit

89832QAD1

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TFC 48 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for TFC 48 investors.

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.

Pair Trading with 89832QAD1 and Genfit

The main advantage of trading using opposite 89832QAD1 and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 89832QAD1 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 TFC 48 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.