Correlation Between Gushen and Genfit
Can any of the company-specific risk be diversified away by investing in both Gushen and Genfit 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 Gushen and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gushen Inc and Genfit, you can compare the effects of market volatilities on Gushen and Genfit 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 Gushen with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gushen and Genfit.
Diversification Opportunities for Gushen and Genfit
Average diversification
The 3 months correlation between Gushen and Genfit is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gushen Inc and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Gushen 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 Gushen Inc are associated (or correlated) with Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Gushen i.e., Gushen and Genfit go up and down completely randomly.
Pair Corralation between Gushen and Genfit
If you would invest 2,270 in Gushen Inc on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Gushen Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Gushen Inc vs. Genfit
Performance |
| Timeline |
| Gushen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genfit |
Gushen and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gushen and Genfit
The main advantage of trading using opposite Gushen and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gushen position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Gushen vs. Genfit | Gushen vs. Kite Realty Group | Gushen vs. Mind Medicine | Gushen vs. Independence Realty Trust |
| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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