Correlation Between Genfit and Griffon
Can any of the company-specific risk be diversified away by investing in both Genfit and Griffon 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 Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Griffon, you can compare the effects of market volatilities on Genfit and Griffon 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 Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Griffon.
Diversification Opportunities for Genfit and Griffon
Very good diversification
The 3 months correlation between Genfit and Griffon is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 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 Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of Genfit i.e., Genfit and Griffon go up and down completely randomly.
Pair Corralation between Genfit and Griffon
Given the investment horizon of 90 days Genfit is expected to generate 3.08 times less return on investment than Griffon. In addition to that, Genfit is 1.5 times more volatile than Griffon. It trades about 0.04 of its total potential returns per unit of risk. Griffon is currently generating about 0.17 per unit of volatility. If you would invest 6,270 in Griffon on August 31, 2024 and sell it today you would earn a total of 2,081 from holding Griffon or generate 33.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Griffon
Performance |
| Timeline |
| Genfit |
| Griffon |
Genfit and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Griffon
The main advantage of trading using opposite Genfit and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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