Correlation Between BANK CENTRAL and Genfit SA
Can any of the company-specific risk be diversified away by investing in both BANK CENTRAL 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 BANK CENTRAL and Genfit SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK CENTRAL ASIA and Genfit SA, you can compare the effects of market volatilities on BANK CENTRAL 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 BANK CENTRAL with a short position of Genfit SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK CENTRAL and Genfit SA.
Diversification Opportunities for BANK CENTRAL and Genfit SA
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BANK and Genfit is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BANK CENTRAL ASIA and Genfit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit SA and BANK CENTRAL 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 BANK CENTRAL ASIA 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 BANK CENTRAL i.e., BANK CENTRAL and Genfit SA go up and down completely randomly.
Pair Corralation between BANK CENTRAL and Genfit SA
Assuming the 90 days trading horizon BANK CENTRAL is expected to generate 15.07 times less return on investment than Genfit SA. But when comparing it to its historical volatility, BANK CENTRAL ASIA is 8.23 times less risky than Genfit SA. It trades about 0.02 of its potential returns per unit of risk. Genfit SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 349.00 in Genfit SA on September 20, 2024 and sell it today you would lose (2.00) from holding Genfit SA or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK CENTRAL ASIA vs. Genfit SA
Performance |
| Timeline |
| BANK CENTRAL ASIA |
| Genfit SA |
BANK CENTRAL and Genfit SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK CENTRAL and Genfit SA
The main advantage of trading using opposite BANK CENTRAL and Genfit SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK CENTRAL 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.| BANK CENTRAL vs. Ebro Foods SA | BANK CENTRAL vs. TYSON FOODS A | BANK CENTRAL vs. JJ SNACK FOODS | BANK CENTRAL vs. Lifeway Foods |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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