Correlation Between Genfit and CARPENTER
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By analyzing existing cross correlation between Genfit and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on Genfit and CARPENTER 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 CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and CARPENTER.
Diversification Opportunities for Genfit and CARPENTER
Average diversification
The 3 months correlation between Genfit and CARPENTER is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY 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 CARPENTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARPENTER TECHNOLOGY has no effect on the direction of Genfit i.e., Genfit and CARPENTER go up and down completely randomly.
Pair Corralation between Genfit and CARPENTER
Given the investment horizon of 90 days Genfit is expected to under-perform the CARPENTER. In addition to that, Genfit is 9.19 times more volatile than CARPENTER TECHNOLOGY P. It trades about -0.16 of its total potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about -0.04 per unit of volatility. If you would invest 10,097 in CARPENTER TECHNOLOGY P on August 30, 2024 and sell it today you would lose (87.00) from holding CARPENTER TECHNOLOGY P or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Genfit vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| Genfit |
| CARPENTER TECHNOLOGY |
Genfit and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and CARPENTER
The main advantage of trading using opposite Genfit and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit position performs unexpectedly, CARPENTER 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 CARPENTER will offset losses from the drop in CARPENTER's long position.The idea behind Genfit and CARPENTER TECHNOLOGY P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CARPENTER vs. National CineMedia | CARPENTER vs. Hooker Furniture | CARPENTER vs. Mediag3 | CARPENTER vs. Hudson Pacific Properties |
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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