Correlation Between Enliven Therapeutics and Genfit
Can any of the company-specific risk be diversified away by investing in both Enliven Therapeutics 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 Enliven Therapeutics and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enliven Therapeutics and Genfit, you can compare the effects of market volatilities on Enliven Therapeutics 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 Enliven Therapeutics with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enliven Therapeutics and Genfit.
Diversification Opportunities for Enliven Therapeutics and Genfit
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enliven and Genfit is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Enliven Therapeutics and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Enliven Therapeutics 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 Enliven Therapeutics 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 Enliven Therapeutics i.e., Enliven Therapeutics and Genfit go up and down completely randomly.
Pair Corralation between Enliven Therapeutics and Genfit
Given the investment horizon of 90 days Enliven Therapeutics is expected to generate 1.25 times more return on investment than Genfit. However, Enliven Therapeutics is 1.25 times more volatile than Genfit. It trades about 0.04 of its potential returns per unit of risk. Genfit is currently generating about 0.02 per unit of risk. If you would invest 1,808 in Enliven Therapeutics on September 3, 2024 and sell it today you would earn a total of 635.00 from holding Enliven Therapeutics or generate 35.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enliven Therapeutics vs. Genfit
Performance |
| Timeline |
| Enliven Therapeutics |
| Genfit |
Enliven Therapeutics and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enliven Therapeutics and Genfit
The main advantage of trading using opposite Enliven Therapeutics and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enliven Therapeutics 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.| Enliven Therapeutics vs. DiaMedica Therapeutics | Enliven Therapeutics vs. Lyra Therapeutics | Enliven Therapeutics vs. Centessa Pharmaceuticals PLC |
| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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