Correlation Between Financiere Marjos and Transgene
Can any of the company-specific risk be diversified away by investing in both Financiere Marjos and Transgene 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 Financiere Marjos and Transgene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financiere Marjos SA and Transgene SA, you can compare the effects of market volatilities on Financiere Marjos and Transgene 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 Financiere Marjos with a short position of Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financiere Marjos and Transgene.
Diversification Opportunities for Financiere Marjos and Transgene
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Financiere and Transgene is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Financiere Marjos SA and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA and Financiere Marjos 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 Financiere Marjos SA are associated (or correlated) with Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Financiere Marjos i.e., Financiere Marjos and Transgene go up and down completely randomly.
Pair Corralation between Financiere Marjos and Transgene
Assuming the 90 days trading horizon Financiere Marjos SA is expected to under-perform the Transgene. In addition to that, Financiere Marjos is 3.34 times more volatile than Transgene SA. It trades about -0.16 of its total potential returns per unit of risk. Transgene SA is currently generating about 0.04 per unit of volatility. If you would invest 68.00 in Transgene SA on October 31, 2024 and sell it today you would earn a total of 1.00 from holding Transgene SA or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Financiere Marjos SA vs. Transgene SA
Performance |
| Timeline |
| Financiere Marjos |
| Transgene SA |
Financiere Marjos and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financiere Marjos and Transgene
The main advantage of trading using opposite Financiere Marjos and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financiere Marjos position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.| Financiere Marjos vs. Fiducial Office Solutions | Financiere Marjos vs. Foncire Euris SA | Financiere Marjos vs. Bernard Loisea | Financiere Marjos vs. Coheris SA |
| Transgene vs. Innate Pharma | Transgene vs. Nanobiotix SA | Transgene vs. Genfit | Transgene vs. AB Science SA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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