Correlation Between Genworth Financial and Sanofi
Can any of the company-specific risk be diversified away by investing in both Genworth Financial and Sanofi 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 Genworth Financial and Sanofi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genworth Financial and Sanofi, you can compare the effects of market volatilities on Genworth Financial and Sanofi 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 Genworth Financial with a short position of Sanofi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genworth Financial and Sanofi.
Diversification Opportunities for Genworth Financial and Sanofi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genworth and Sanofi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genworth Financial and Sanofi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanofi and Genworth Financial 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 Genworth Financial are associated (or correlated) with Sanofi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanofi has no effect on the direction of Genworth Financial i.e., Genworth Financial and Sanofi go up and down completely randomly.
Pair Corralation between Genworth Financial and Sanofi
If you would invest 81,494 in Sanofi on September 3, 2024 and sell it today you would earn a total of 17,456 from holding Sanofi or generate 21.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.96% |
| Values | Daily Returns |
Genworth Financial vs. Sanofi
Performance |
| Timeline |
| Genworth Financial |
| Sanofi |
Genworth Financial and Sanofi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genworth Financial and Sanofi
The main advantage of trading using opposite Genworth Financial and Sanofi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genworth Financial position performs unexpectedly, Sanofi 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 Sanofi will offset losses from the drop in Sanofi's long position.| Genworth Financial vs. Grupo Nacional Provincial | Genworth Financial vs. The Select Sector | Genworth Financial vs. Promotora y Operadora | Genworth Financial vs. SPDR Series Trust |
| Sanofi vs. Genworth Financial | Sanofi vs. Grupo Carso SAB | Sanofi vs. McEwen Mining | Sanofi vs. Cognizant Technology Solutions |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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