Correlation Between Lyxor 1 and Genfit SA
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 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 Lyxor 1 and Genfit SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Genfit SA, you can compare the effects of market volatilities on Lyxor 1 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 Lyxor 1 with a short position of Genfit SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Genfit SA.
Diversification Opportunities for Lyxor 1 and Genfit SA
Very good diversification
The 3 months correlation between Lyxor and Genfit is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Genfit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit SA and Lyxor 1 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 Lyxor 1 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 Lyxor 1 i.e., Lyxor 1 and Genfit SA go up and down completely randomly.
Pair Corralation between Lyxor 1 and Genfit SA
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 23.93 times less return on investment than Genfit SA. But when comparing it to its historical volatility, Lyxor 1 is 12.11 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 Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Lyxor 1 vs. Genfit SA
Performance |
| Timeline |
| Lyxor 1 |
| Genfit SA |
Lyxor 1 and Genfit SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Genfit SA
The main advantage of trading using opposite Lyxor 1 and Genfit SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 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.| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor Index Fund | Lyxor 1 vs. Lyxor 1 TecDAX |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |