Correlation Between Genfit and Arq
Can any of the company-specific risk be diversified away by investing in both Genfit and Arq 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 Arq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Arq Inc, you can compare the effects of market volatilities on Genfit and Arq 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 Arq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Arq.
Diversification Opportunities for Genfit and Arq
Very good diversification
The 3 months correlation between Genfit and Arq is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Arq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arq 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 Arq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arq Inc has no effect on the direction of Genfit i.e., Genfit and Arq go up and down completely randomly.
Pair Corralation between Genfit and Arq
Given the investment horizon of 90 days Genfit is expected to generate 1.85 times less return on investment than Arq. But when comparing it to its historical volatility, Genfit is 1.02 times less risky than Arq. It trades about 0.01 of its potential returns per unit of risk. Arq Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 629.00 in Arq Inc on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Arq Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Arq Inc
Performance |
| Timeline |
| Genfit |
| Arq Inc |
Genfit and Arq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Arq
The main advantage of trading using opposite Genfit and Arq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Arq 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 Arq will offset losses from the drop in Arq's long position.| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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