Correlation Between DAX Index and Genfit SA
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By analyzing existing cross correlation between DAX Index and Genfit SA, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Genfit SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Genfit SA.
Diversification Opportunities for DAX Index and Genfit SA
Very good diversification
The 3 months correlation between DAX and Genfit is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Genfit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit SA and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Genfit SA go up and down completely randomly.
Pair Corralation between DAX Index and Genfit SA
Assuming the 90 days trading horizon DAX Index is expected to generate 4.41 times less return on investment than Genfit SA. But when comparing it to its historical volatility, DAX Index is 11.85 times less risky than Genfit SA. It trades about 0.08 of its potential returns per unit of risk. Genfit SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 396.00 in Genfit SA on September 19, 2024 and sell it today you would lose (42.00) from holding Genfit SA or give up 10.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
DAX Index vs. Genfit SA
Performance |
| Timeline |
DAX Index and Genfit SA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Genfit SA
Pair trading matchups for Genfit SA
Pair Trading with DAX Index and Genfit SA
The main advantage of trading using opposite DAX Index and Genfit SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Sekisui Chemical Co | DAX Index vs. United Internet AG | DAX Index vs. X FAB Silicon Foundries | DAX Index vs. TIANDE CHEMICAL |
| Genfit SA vs. Summit Hotel Properties | Genfit SA vs. NORWEGIAN AIR SHUT | Genfit SA vs. Host Hotels Resorts | Genfit SA vs. ALTAIR RES INC |
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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