Correlation Between Intel and Genfit
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Genfit, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Genfit.
Diversification Opportunities for Intel and Genfit
Poor diversification
The 3 months correlation between Intel and Genfit is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Intel 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 Intel 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 Intel i.e., Intel and Genfit go up and down completely randomly.
Pair Corralation between Intel and Genfit
Given the investment horizon of 90 days Intel is expected to generate 1.35 times more return on investment than Genfit. However, Intel is 1.35 times more volatile than Genfit. It trades about 0.2 of its potential returns per unit of risk. Genfit is currently generating about 0.1 per unit of risk. If you would invest 2,029 in Intel on November 27, 2024 and sell it today you would earn a total of 398.00 from holding Intel or generate 19.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Genfit
Performance |
| Timeline |
| Intel |
| Genfit |
Intel and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Genfit
The main advantage of trading using opposite Intel and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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