Correlation Between Day One and Genfit
Can any of the company-specific risk be diversified away by investing in both Day One 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 Day One and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Day One Biopharmaceuticals and Genfit, you can compare the effects of market volatilities on Day One 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 Day One with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Day One and Genfit.
Diversification Opportunities for Day One and Genfit
Very poor diversification
The 3 months correlation between Day and Genfit is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Day One Biopharmaceuticals and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Day One 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 Day One Biopharmaceuticals 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 Day One i.e., Day One and Genfit go up and down completely randomly.
Pair Corralation between Day One and Genfit
Given the investment horizon of 90 days Day One Biopharmaceuticals is expected to generate 1.37 times more return on investment than Genfit. However, Day One is 1.37 times more volatile than Genfit. It trades about -0.03 of its potential returns per unit of risk. Genfit is currently generating about -0.25 per unit of risk. If you would invest 1,279 in Day One Biopharmaceuticals on October 21, 2024 and sell it today you would lose (25.00) from holding Day One Biopharmaceuticals or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Day One Biopharmaceuticals vs. Genfit
Performance |
| Timeline |
| Day One Biopharmaceu |
| Genfit |
Day One and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Day One and Genfit
The main advantage of trading using opposite Day One and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Day One 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.| Day One vs. X4 Pharmaceuticals | Day One vs. Inozyme Pharma | Day One vs. Acumen Pharmaceuticals | Day One vs. Mereo BioPharma Group |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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