Correlation Between Genfit and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both Genfit and Fortress Biotech 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 Fortress Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Fortress Biotech, you can compare the effects of market volatilities on Genfit and Fortress Biotech 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 Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Fortress Biotech.
Diversification Opportunities for Genfit and Fortress Biotech
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genfit and Fortress is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Fortress Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech 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 Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech has no effect on the direction of Genfit i.e., Genfit and Fortress Biotech go up and down completely randomly.
Pair Corralation between Genfit and Fortress Biotech
Given the investment horizon of 90 days Genfit is expected to generate 19.13 times less return on investment than Fortress Biotech. But when comparing it to its historical volatility, Genfit is 1.4 times less risky than Fortress Biotech. It trades about 0.0 of its potential returns per unit of risk. Fortress Biotech is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 152.00 in Fortress Biotech on January 5, 2025 and sell it today you would earn a total of 0.00 from holding Fortress Biotech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Fortress Biotech
Performance |
| Timeline |
| Genfit |
| Fortress Biotech |
Genfit and Fortress Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Fortress Biotech
The main advantage of trading using opposite Genfit and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Fortress Biotech 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 Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.| Genfit vs. Intracellular Th | Genfit vs. Amphastar P | Genfit vs. Assertio Therapeutics | Genfit vs. ANI Pharmaceuticals |
| Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Aptose Biosciences | Fortress Biotech vs. Fortress Biotech Pref | Fortress Biotech vs. Checkpoint Therapeutics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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