Correlation Between Arhaus and Genfit
Can any of the company-specific risk be diversified away by investing in both Arhaus 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 Arhaus and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arhaus Inc and Genfit, you can compare the effects of market volatilities on Arhaus 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 Arhaus with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arhaus and Genfit.
Diversification Opportunities for Arhaus and Genfit
Very good diversification
The 3 months correlation between Arhaus and Genfit is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Arhaus Inc and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Arhaus 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 Arhaus Inc 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 Arhaus i.e., Arhaus and Genfit go up and down completely randomly.
Pair Corralation between Arhaus and Genfit
Given the investment horizon of 90 days Arhaus Inc is expected to under-perform the Genfit. In addition to that, Arhaus is 1.7 times more volatile than Genfit. It trades about -0.24 of its total potential returns per unit of risk. Genfit is currently generating about -0.1 per unit of volatility. If you would invest 383.00 in Genfit on October 12, 2024 and sell it today you would lose (16.00) from holding Genfit or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arhaus Inc vs. Genfit
Performance |
| Timeline |
| Arhaus Inc |
| Genfit |
Arhaus and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arhaus and Genfit
The main advantage of trading using opposite Arhaus and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arhaus 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.| Arhaus vs. Floor Decor Holdings | Arhaus vs. Live Ventures | Arhaus vs. Haverty Furniture Companies | Arhaus vs. Haverty Furniture Companies |
| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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