Correlation Between Brockhaus Capital and Genfit SA
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital and Genfit SA 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 Brockhaus Capital and Genfit SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and Genfit SA, you can compare the effects of market volatilities on Brockhaus Capital and Genfit SA 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 Brockhaus Capital with a short position of Genfit SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and Genfit SA.
Diversification Opportunities for Brockhaus Capital and Genfit SA
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brockhaus and Genfit is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and Genfit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit SA and Brockhaus Capital 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 Brockhaus Capital Management are associated (or correlated) with Genfit SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit SA has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and Genfit SA go up and down completely randomly.
Pair Corralation between Brockhaus Capital and Genfit SA
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to generate 1.62 times more return on investment than Genfit SA. However, Brockhaus Capital is 1.62 times more volatile than Genfit SA. It trades about 0.0 of its potential returns per unit of risk. Genfit SA is currently generating about -0.45 per unit of risk. If you would invest 2,360 in Brockhaus Capital Management on September 20, 2024 and sell it today you would lose (10.00) from holding Brockhaus Capital Management or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Brockhaus Capital Management vs. Genfit SA
Performance |
| Timeline |
| Brockhaus Capital |
| Genfit SA |
Brockhaus Capital and Genfit SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and Genfit SA
The main advantage of trading using opposite Brockhaus Capital and Genfit SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, Genfit SA 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 SA will offset losses from the drop in Genfit SA's long position.| Brockhaus Capital vs. Warner Music Group | Brockhaus Capital vs. OURGAME INTHOLDL 00005 | Brockhaus Capital vs. Boyd Gaming | Brockhaus Capital vs. Dave Busters Entertainment |
| Genfit SA vs. BORR DRILLING NEW | Genfit SA vs. Brockhaus Capital Management | Genfit SA vs. FIREWEED METALS P | Genfit SA vs. Major Drilling Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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