Correlation Between Genfit and First Horizon
Can any of the company-specific risk be diversified away by investing in both Genfit and First Horizon 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 First Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and First Horizon, you can compare the effects of market volatilities on Genfit and First Horizon 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 First Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and First Horizon.
Diversification Opportunities for Genfit and First Horizon
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genfit and First is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and First Horizon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Horizon 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 First Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Horizon has no effect on the direction of Genfit i.e., Genfit and First Horizon go up and down completely randomly.
Pair Corralation between Genfit and First Horizon
Given the investment horizon of 90 days Genfit is expected to under-perform the First Horizon. In addition to that, Genfit is 10.88 times more volatile than First Horizon. It trades about -0.03 of its total potential returns per unit of risk. First Horizon is currently generating about 0.23 per unit of volatility. If you would invest 2,465 in First Horizon on November 3, 2024 and sell it today you would earn a total of 35.00 from holding First Horizon or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. First Horizon
Performance |
| Timeline |
| Genfit |
| First Horizon |
Genfit and First Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and First Horizon
The main advantage of trading using opposite Genfit and First Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, First Horizon 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 First Horizon will offset losses from the drop in First Horizon's long position.| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
| First Horizon vs. Coda Octopus Group | First Horizon vs. Goosehead Insurance | First Horizon vs. Everspin Technologies | First Horizon vs. Guangdong Investment Limited |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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