Correlation Between Genfit and Erytech Pharma
Can any of the company-specific risk be diversified away by investing in both Genfit and Erytech 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 Erytech Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Erytech Pharma SA, you can compare the effects of market volatilities on Genfit and Erytech 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 Erytech Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Erytech Pharma.
Diversification Opportunities for Genfit and Erytech Pharma
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genfit and Erytech is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Erytech Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erytech Pharma SA 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 Erytech Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erytech Pharma SA has no effect on the direction of Genfit i.e., Genfit and Erytech Pharma go up and down completely randomly.
Pair Corralation between Genfit and Erytech Pharma
If you would invest 421.00 in Genfit on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Genfit or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Genfit vs. Erytech Pharma SA
Performance |
| Timeline |
| Genfit |
| Erytech Pharma SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genfit and Erytech Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Erytech Pharma
The main advantage of trading using opposite Genfit and Erytech Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Erytech 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 Erytech Pharma will offset losses from the drop in Erytech Pharma's long position.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| Erytech Pharma vs. Genfit | Erytech Pharma vs. Eliem Therapeutics | Erytech Pharma vs. HCW Biologics | Erytech Pharma vs. Aptorum Group Ltd |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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