Correlation Between Genfit and Surrozen
Can any of the company-specific risk be diversified away by investing in both Genfit and Surrozen 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 Surrozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Surrozen, you can compare the effects of market volatilities on Genfit and Surrozen 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 Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Surrozen.
Diversification Opportunities for Genfit and Surrozen
Poor diversification
The 3 months correlation between Genfit and Surrozen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen 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 Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Genfit i.e., Genfit and Surrozen go up and down completely randomly.
Pair Corralation between Genfit and Surrozen
Given the investment horizon of 90 days Genfit is expected to under-perform the Surrozen. But the stock apears to be less risky and, when comparing its historical volatility, Genfit is 2.84 times less risky than Surrozen. The stock trades about -0.41 of its potential returns per unit of risk. The Surrozen is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,109 in Surrozen on August 31, 2024 and sell it today you would earn a total of 111.00 from holding Surrozen or generate 10.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Genfit vs. Surrozen
Performance |
| Timeline |
| Genfit |
| Surrozen |
Genfit and Surrozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Surrozen
The main advantage of trading using opposite Genfit and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen's long position.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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