Correlation Between Biophytis and Genfit
Can any of the company-specific risk be diversified away by investing in both Biophytis 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 Biophytis and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biophytis SA and Genfit, you can compare the effects of market volatilities on Biophytis 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 Biophytis with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biophytis and Genfit.
Diversification Opportunities for Biophytis and Genfit
Very good diversification
The 3 months correlation between Biophytis and Genfit is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Biophytis SA and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Biophytis 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 Biophytis SA 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 Biophytis i.e., Biophytis and Genfit go up and down completely randomly.
Pair Corralation between Biophytis and Genfit
Assuming the 90 days trading horizon Biophytis SA is expected to generate 1.42 times more return on investment than Genfit. However, Biophytis is 1.42 times more volatile than Genfit. It trades about -0.01 of its potential returns per unit of risk. Genfit is currently generating about -0.49 per unit of risk. If you would invest 31.00 in Biophytis SA on September 4, 2024 and sell it today you would lose (1.00) from holding Biophytis SA or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biophytis SA vs. Genfit
Performance |
| Timeline |
| Biophytis SA |
| Genfit |
Biophytis and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biophytis and Genfit
The main advantage of trading using opposite Biophytis and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biophytis 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.| Biophytis vs. Novacyt | Biophytis vs. Biosynex | Biophytis vs. Neovacs SA | Biophytis vs. Quantum Genomics SA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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