Correlation Between Genfit and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Genfit and Inflection Point 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 Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Inflection Point Acquisition, you can compare the effects of market volatilities on Genfit and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Inflection Point.
Diversification Opportunities for Genfit and Inflection Point
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genfit and Inflection is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Genfit i.e., Genfit and Inflection Point go up and down completely randomly.
Pair Corralation between Genfit and Inflection Point
Given the investment horizon of 90 days Genfit is expected to generate 49.48 times more return on investment than Inflection Point. However, Genfit is 49.48 times more volatile than Inflection Point Acquisition. It trades about 0.04 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.18 per unit of risk. If you would invest 410.00 in Genfit on August 31, 2024 and sell it today you would earn a total of 17.00 from holding Genfit or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Inflection Point Acquisition
Performance |
| Timeline |
| Genfit |
| Inflection Point Acq |
Genfit and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Inflection Point
The main advantage of trading using opposite Genfit and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| Inflection Point vs. PowerUp Acquisition Corp | Inflection Point vs. HUMANA INC | Inflection Point vs. Aquagold International | Inflection Point vs. Barloworld Ltd ADR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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