Correlation Between Genfit and Tscan Therapeutics
Can any of the company-specific risk be diversified away by investing in both Genfit and Tscan Therapeutics 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 Tscan Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Tscan Therapeutics, you can compare the effects of market volatilities on Genfit and Tscan Therapeutics 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 Tscan Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Tscan Therapeutics.
Diversification Opportunities for Genfit and Tscan Therapeutics
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genfit and Tscan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Tscan Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tscan Therapeutics 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 Tscan Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tscan Therapeutics has no effect on the direction of Genfit i.e., Genfit and Tscan Therapeutics go up and down completely randomly.
Pair Corralation between Genfit and Tscan Therapeutics
Given the investment horizon of 90 days Genfit is expected to generate 1.19 times more return on investment than Tscan Therapeutics. However, Genfit is 1.19 times more volatile than Tscan Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Tscan Therapeutics is currently generating about -0.03 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Tscan Therapeutics
Performance |
| Timeline |
| Genfit |
| Tscan Therapeutics |
Genfit and Tscan Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Tscan Therapeutics
The main advantage of trading using opposite Genfit and Tscan Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Tscan Therapeutics 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 Tscan Therapeutics will offset losses from the drop in Tscan Therapeutics' long position.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| Tscan Therapeutics vs. Apellis Pharmaceuticals | Tscan Therapeutics vs. Iteos Therapeutics | Tscan Therapeutics vs. Day One Biopharmaceuticals | Tscan Therapeutics vs. Acumen Pharmaceuticals |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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