Correlation Between Akanda Corp and Genfit
Can any of the company-specific risk be diversified away by investing in both Akanda Corp 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 Akanda Corp and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Genfit, you can compare the effects of market volatilities on Akanda Corp 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 Akanda Corp with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Genfit.
Diversification Opportunities for Akanda Corp and Genfit
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Akanda and Genfit is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Akanda Corp 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 Akanda Corp 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 Akanda Corp i.e., Akanda Corp and Genfit go up and down completely randomly.
Pair Corralation between Akanda Corp and Genfit
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the Genfit. In addition to that, Akanda Corp is 1.15 times more volatile than Genfit. It trades about -0.14 of its total potential returns per unit of risk. Genfit is currently generating about -0.02 per unit of volatility. If you would invest 542.00 in Genfit on September 2, 2024 and sell it today you would lose (121.00) from holding Genfit or give up 22.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Genfit
Performance |
| Timeline |
| Akanda Corp |
| Genfit |
Akanda Corp and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Genfit
The main advantage of trading using opposite Akanda Corp and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp 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.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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