Correlation Between Genfit and TMT Acquisition
Can any of the company-specific risk be diversified away by investing in both Genfit and TMT Acquisition 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 TMT Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and TMT Acquisition Corp, you can compare the effects of market volatilities on Genfit and TMT Acquisition 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 TMT Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and TMT Acquisition.
Diversification Opportunities for Genfit and TMT Acquisition
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genfit and TMT is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and TMT Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMT Acquisition Corp 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 TMT Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMT Acquisition Corp has no effect on the direction of Genfit i.e., Genfit and TMT Acquisition go up and down completely randomly.
Pair Corralation between Genfit and TMT Acquisition
Given the investment horizon of 90 days Genfit is expected to generate 12.93 times less return on investment than TMT Acquisition. But when comparing it to its historical volatility, Genfit is 3.5 times less risky than TMT Acquisition. It trades about 0.02 of its potential returns per unit of risk. TMT Acquisition Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 22.00 in TMT Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 16.00 from holding TMT Acquisition Corp or generate 72.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 43.03% |
| Values | Daily Returns |
Genfit vs. TMT Acquisition Corp
Performance |
| Timeline |
| Genfit |
| TMT Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Genfit and TMT Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and TMT Acquisition
The main advantage of trading using opposite Genfit and TMT Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, TMT Acquisition 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 TMT Acquisition will offset losses from the drop in TMT Acquisition's long position.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| TMT Acquisition vs. Citi Trends | TMT Acquisition vs. Zumiez Inc | TMT Acquisition vs. Figs Inc | TMT Acquisition vs. Lululemon Athletica |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |