Correlation Between Genfit and Eurasia Fonciere
Can any of the company-specific risk be diversified away by investing in both Genfit and Eurasia Fonciere 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 Genfit and Eurasia Fonciere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Eurasia Fonciere Investissements, you can compare the effects of market volatilities on Genfit and Eurasia Fonciere 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 Genfit with a short position of Eurasia Fonciere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Eurasia Fonciere.
Diversification Opportunities for Genfit and Eurasia Fonciere
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genfit and Eurasia is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Eurasia Fonciere Investissemen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurasia Fonciere Inv and Genfit 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 Genfit are associated (or correlated) with Eurasia Fonciere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurasia Fonciere Inv has no effect on the direction of Genfit i.e., Genfit and Eurasia Fonciere go up and down completely randomly.
Pair Corralation between Genfit and Eurasia Fonciere
Assuming the 90 days trading horizon Genfit is expected to under-perform the Eurasia Fonciere. But the stock apears to be less risky and, when comparing its historical volatility, Genfit is 1.09 times less risky than Eurasia Fonciere. The stock trades about -0.35 of its potential returns per unit of risk. The Eurasia Fonciere Investissements is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Eurasia Fonciere Investissements on September 1, 2024 and sell it today you would lose (1.00) from holding Eurasia Fonciere Investissements or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Genfit vs. Eurasia Fonciere Investissemen
Performance |
| Timeline |
| Genfit |
| Eurasia Fonciere Inv |
Genfit and Eurasia Fonciere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Eurasia Fonciere
The main advantage of trading using opposite Genfit and Eurasia Fonciere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Eurasia Fonciere 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 Eurasia Fonciere will offset losses from the drop in Eurasia Fonciere's long position.The idea behind Genfit and Eurasia Fonciere Investissements pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Eurasia Fonciere vs. Rallye SA | Eurasia Fonciere vs. Altamir SCA | Eurasia Fonciere vs. Fonciere Lyonnaise | Eurasia Fonciere vs. Fonciere Inea |
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.
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