Correlation Between Genfit and BrightSpring Health
Can any of the company-specific risk be diversified away by investing in both Genfit and BrightSpring Health 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 BrightSpring Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and BrightSpring Health Services,, you can compare the effects of market volatilities on Genfit and BrightSpring Health 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 BrightSpring Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and BrightSpring Health.
Diversification Opportunities for Genfit and BrightSpring Health
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genfit and BrightSpring is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and BrightSpring Health Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightSpring Health 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 BrightSpring Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightSpring Health has no effect on the direction of Genfit i.e., Genfit and BrightSpring Health go up and down completely randomly.
Pair Corralation between Genfit and BrightSpring Health
Given the investment horizon of 90 days Genfit is expected to under-perform the BrightSpring Health. In addition to that, Genfit is 2.02 times more volatile than BrightSpring Health Services,. It trades about -0.43 of its total potential returns per unit of risk. BrightSpring Health Services, is currently generating about -0.2 per unit of volatility. If you would invest 7,129 in BrightSpring Health Services, on September 13, 2024 and sell it today you would lose (465.00) from holding BrightSpring Health Services, or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Genfit vs. BrightSpring Health Services,
Performance |
| Timeline |
| Genfit |
| BrightSpring Health |
Genfit and BrightSpring Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and BrightSpring Health
The main advantage of trading using opposite Genfit and BrightSpring Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, BrightSpring Health 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 BrightSpring Health will offset losses from the drop in BrightSpring Health's long position.| Genfit vs. Puma Biotechnology | Genfit vs. Iovance Biotherapeutics | Genfit vs. Sarepta Therapeutics | Genfit vs. Day One Biopharmaceuticals |
| BrightSpring Health vs. ATRenew Inc DRC | BrightSpring Health vs. Canlan Ice Sports | BrightSpring Health vs. Academy Sports Outdoors | BrightSpring Health vs. Mesa Air Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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