Correlation Between Aehr Test and Genfit
Can any of the company-specific risk be diversified away by investing in both Aehr Test 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 Aehr Test and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and Genfit, you can compare the effects of market volatilities on Aehr Test 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 Aehr Test with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Genfit.
Diversification Opportunities for Aehr Test and Genfit
Very weak diversification
The 3 months correlation between Aehr and Genfit is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Aehr Test 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 Aehr Test Systems 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 Aehr Test i.e., Aehr Test and Genfit go up and down completely randomly.
Pair Corralation between Aehr Test and Genfit
Given the investment horizon of 90 days Aehr Test Systems is expected to generate 1.33 times more return on investment than Genfit. However, Aehr Test is 1.33 times more volatile than Genfit. It trades about 0.03 of its potential returns per unit of risk. Genfit is currently generating about -0.02 per unit of risk. If you would invest 1,136 in Aehr Test Systems on September 2, 2024 and sell it today you would earn a total of 53.00 from holding Aehr Test Systems or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. Genfit
Performance |
| Timeline |
| Aehr Test Systems |
| Genfit |
Aehr Test and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Genfit
The main advantage of trading using opposite Aehr Test and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test 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.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| Genfit vs. Tff Pharmaceuticals | Genfit vs. Eliem Therapeutics | Genfit vs. Inhibrx | Genfit vs. Enliven Therapeutics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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