Correlation Between Genfit and Transurban
Can any of the company-specific risk be diversified away by investing in both Genfit and Transurban 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 Transurban into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Transurban Group, you can compare the effects of market volatilities on Genfit and Transurban 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 Transurban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Transurban.
Diversification Opportunities for Genfit and Transurban
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genfit and Transurban is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Transurban Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transurban Group 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 Transurban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transurban Group has no effect on the direction of Genfit i.e., Genfit and Transurban go up and down completely randomly.
Pair Corralation between Genfit and Transurban
Given the investment horizon of 90 days Genfit is expected to under-perform the Transurban. In addition to that, Genfit is 2.33 times more volatile than Transurban Group. It trades about -0.44 of its total potential returns per unit of risk. Transurban Group is currently generating about -0.31 per unit of volatility. If you would invest 881.00 in Transurban Group on September 13, 2024 and sell it today you would lose (79.00) from holding Transurban Group or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Genfit vs. Transurban Group
Performance |
| Timeline |
| Genfit |
| Transurban Group |
Genfit and Transurban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Transurban
The main advantage of trading using opposite Genfit and Transurban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, Transurban 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 Transurban will offset losses from the drop in Transurban's long position.| Genfit vs. Puma Biotechnology | Genfit vs. Iovance Biotherapeutics | Genfit vs. Sarepta Therapeutics | Genfit vs. Day One Biopharmaceuticals |
| Transurban vs. Ispire Technology Common | Transurban vs. Apogee Enterprises | Transurban vs. Molson Coors Brewing | Transurban vs. Brenmiller Energy Ltd |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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