Correlation Between Genfit and Arhaus
Can any of the company-specific risk be diversified away by investing in both Genfit and Arhaus 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 Arhaus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Arhaus Inc, you can compare the effects of market volatilities on Genfit and Arhaus 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 Arhaus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Arhaus.
Diversification Opportunities for Genfit and Arhaus
Excellent diversification
The 3 months correlation between Genfit and Arhaus is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Arhaus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arhaus Inc 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 Arhaus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arhaus Inc has no effect on the direction of Genfit i.e., Genfit and Arhaus go up and down completely randomly.
Pair Corralation between Genfit and Arhaus
Given the investment horizon of 90 days Genfit is expected to generate 1.38 times less return on investment than Arhaus. In addition to that, Genfit is 1.06 times more volatile than Arhaus Inc. It trades about 0.01 of its total potential returns per unit of risk. Arhaus Inc is currently generating about 0.01 per unit of volatility. If you would invest 1,404 in Arhaus Inc on October 26, 2024 and sell it today you would lose (169.00) from holding Arhaus Inc or give up 12.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Arhaus Inc
Performance |
| Timeline |
| Genfit |
| Arhaus Inc |
Genfit and Arhaus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Arhaus
The main advantage of trading using opposite Genfit and Arhaus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Arhaus 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 Arhaus will offset losses from the drop in Arhaus' long position.| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
| Arhaus vs. Floor Decor Holdings | Arhaus vs. Live Ventures | Arhaus vs. Haverty Furniture Companies | Arhaus vs. Home Depot |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |