Correlation Between Eurobio Scientific and Genfit
Can any of the company-specific risk be diversified away by investing in both Eurobio Scientific 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 Eurobio Scientific and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurobio Scientific SA and Genfit, you can compare the effects of market volatilities on Eurobio Scientific 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 Eurobio Scientific with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobio Scientific and Genfit.
Diversification Opportunities for Eurobio Scientific and Genfit
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eurobio and Genfit is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Eurobio Scientific SA and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Eurobio Scientific 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 Eurobio Scientific 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 Eurobio Scientific i.e., Eurobio Scientific and Genfit go up and down completely randomly.
Pair Corralation between Eurobio Scientific and Genfit
Assuming the 90 days trading horizon Eurobio Scientific SA is expected to generate 0.82 times more return on investment than Genfit. However, Eurobio Scientific SA is 1.23 times less risky 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 2,002 in Eurobio Scientific SA on September 4, 2024 and sell it today you would earn a total of 558.00 from holding Eurobio Scientific SA or generate 27.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobio Scientific SA vs. Genfit
Performance |
| Timeline |
| Eurobio Scientific |
| Genfit |
Eurobio Scientific and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobio Scientific and Genfit
The main advantage of trading using opposite Eurobio Scientific and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobio Scientific 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.| Eurobio Scientific vs. Biosynex | Eurobio Scientific vs. Novacyt | Eurobio Scientific vs. Biophytis SA | Eurobio Scientific vs. Intrasense |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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