Correlation Between Genfit and Fast Retailing
Can any of the company-specific risk be diversified away by investing in both Genfit and Fast Retailing 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 Fast Retailing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Fast Retailing Co, you can compare the effects of market volatilities on Genfit and Fast Retailing 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 Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Fast Retailing.
Diversification Opportunities for Genfit and Fast Retailing
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genfit and Fast is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing 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 Fast Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Retailing has no effect on the direction of Genfit i.e., Genfit and Fast Retailing go up and down completely randomly.
Pair Corralation between Genfit and Fast Retailing
Given the investment horizon of 90 days Genfit is expected to under-perform the Fast Retailing. In addition to that, Genfit is 1.92 times more volatile than Fast Retailing Co. It trades about -0.44 of its total potential returns per unit of risk. Fast Retailing Co is currently generating about 0.05 per unit of volatility. If you would invest 33,100 in Fast Retailing Co on September 14, 2024 and sell it today you would earn a total of 490.00 from holding Fast Retailing Co or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Fast Retailing Co
Performance |
| Timeline |
| Genfit |
| Fast Retailing |
Genfit and Fast Retailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Fast Retailing
The main advantage of trading using opposite Genfit and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Fast Retailing 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 Fast Retailing will offset losses from the drop in Fast Retailing's long position.| Genfit vs. Puma Biotechnology | Genfit vs. Iovance Biotherapeutics | Genfit vs. Sarepta Therapeutics | Genfit vs. Day One Biopharmaceuticals |
| Fast Retailing vs. Industria de Diseno | Fast Retailing vs. Aritzia | Fast Retailing vs. Shoe Carnival | Fast Retailing vs. Genesco |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |