Correlation Between Genfit and Summit Environmental
Can any of the company-specific risk be diversified away by investing in both Genfit and Summit Environmental 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 Summit Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Summit Environmental, you can compare the effects of market volatilities on Genfit and Summit Environmental 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 Summit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Summit Environmental.
Diversification Opportunities for Genfit and Summit Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genfit and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Summit Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Environmental 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 Summit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Environmental has no effect on the direction of Genfit i.e., Genfit and Summit Environmental go up and down completely randomly.
Pair Corralation between Genfit and Summit Environmental
If you would invest 0.01 in Summit Environmental on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Summit Environmental or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Genfit vs. Summit Environmental
Performance |
| Timeline |
| Genfit |
| Summit Environmental |
Genfit and Summit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Summit Environmental
The main advantage of trading using opposite Genfit and Summit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Summit Environmental 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 Summit Environmental will offset losses from the drop in Summit Environmental's long position.| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
| Summit Environmental vs. Tower Semiconductor | Summit Environmental vs. Franklin Wireless Corp | Summit Environmental vs. NETGEAR | Summit Environmental vs. Eldorado Gold 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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