Correlation Between Genfit and Jacobs Solutions
Can any of the company-specific risk be diversified away by investing in both Genfit and Jacobs Solutions 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 Jacobs Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Jacobs Solutions, you can compare the effects of market volatilities on Genfit and Jacobs Solutions 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 Jacobs Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Jacobs Solutions.
Diversification Opportunities for Genfit and Jacobs Solutions
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genfit and Jacobs is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Jacobs Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacobs Solutions 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 Jacobs Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacobs Solutions has no effect on the direction of Genfit i.e., Genfit and Jacobs Solutions go up and down completely randomly.
Pair Corralation between Genfit and Jacobs Solutions
Given the investment horizon of 90 days Genfit is expected to generate 1.47 times less return on investment than Jacobs Solutions. In addition to that, Genfit is 2.81 times more volatile than Jacobs Solutions. It trades about 0.04 of its total potential returns per unit of risk. Jacobs Solutions is currently generating about 0.15 per unit of volatility. If you would invest 12,261 in Jacobs Solutions on August 31, 2024 and sell it today you would earn a total of 1,860 from holding Jacobs Solutions or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Jacobs Solutions
Performance |
| Timeline |
| Genfit |
| Jacobs Solutions |
Genfit and Jacobs Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Jacobs Solutions
The main advantage of trading using opposite Genfit and Jacobs Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Jacobs Solutions 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 Jacobs Solutions will offset losses from the drop in Jacobs Solutions' long position.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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