Correlation Between Genfit and Innate Pharma
Can any of the company-specific risk be diversified away by investing in both Genfit and Innate Pharma 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 Innate Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Innate Pharma, you can compare the effects of market volatilities on Genfit and Innate Pharma 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 Innate Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Innate Pharma.
Diversification Opportunities for Genfit and Innate Pharma
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genfit and Innate is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Innate Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innate Pharma 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 Innate Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innate Pharma has no effect on the direction of Genfit i.e., Genfit and Innate Pharma go up and down completely randomly.
Pair Corralation between Genfit and Innate Pharma
Assuming the 90 days trading horizon Genfit is expected to under-perform the Innate Pharma. In addition to that, Genfit is 1.08 times more volatile than Innate Pharma. It trades about -0.28 of its total potential returns per unit of risk. Innate Pharma is currently generating about -0.2 per unit of volatility. If you would invest 167.00 in Innate Pharma on August 28, 2024 and sell it today you would lose (24.00) from holding Innate Pharma or give up 14.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Innate Pharma
Performance |
| Timeline |
| Genfit |
| Innate Pharma |
Genfit and Innate Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Innate Pharma
The main advantage of trading using opposite Genfit and Innate Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Innate Pharma 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 Innate Pharma will offset losses from the drop in Innate Pharma's long position.| Genfit vs. Biomerieux SA | Genfit vs. Eurofins Scientific SE | Genfit vs. Sartorius Stedim Biotech | Genfit vs. SEB SA |
| Innate Pharma vs. Genfit | Innate Pharma vs. Nanobiotix SA | Innate Pharma vs. Cellectis | Innate Pharma 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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