Correlation Between Iovance Biotherapeutics and Genfit
Can any of the company-specific risk be diversified away by investing in both Iovance Biotherapeutics 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 Iovance Biotherapeutics and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iovance Biotherapeutics and Genfit, you can compare the effects of market volatilities on Iovance Biotherapeutics 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 Iovance Biotherapeutics with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iovance Biotherapeutics and Genfit.
Diversification Opportunities for Iovance Biotherapeutics and Genfit
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iovance and Genfit is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Iovance Biotherapeutics and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Iovance Biotherapeutics 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 Iovance Biotherapeutics 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 Iovance Biotherapeutics i.e., Iovance Biotherapeutics and Genfit go up and down completely randomly.
Pair Corralation between Iovance Biotherapeutics and Genfit
Given the investment horizon of 90 days Iovance Biotherapeutics is expected to generate 1.22 times more return on investment than Genfit. However, Iovance Biotherapeutics is 1.22 times more volatile than Genfit. It trades about -0.13 of its potential returns per unit of risk. Genfit is currently generating about -0.44 per unit of risk. If you would invest 900.00 in Iovance Biotherapeutics on September 14, 2024 and sell it today you would lose (104.00) from holding Iovance Biotherapeutics or give up 11.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iovance Biotherapeutics vs. Genfit
Performance |
| Timeline |
| Iovance Biotherapeutics |
| Genfit |
Iovance Biotherapeutics and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iovance Biotherapeutics and Genfit
The main advantage of trading using opposite Iovance Biotherapeutics and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iovance Biotherapeutics 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.| Iovance Biotherapeutics vs. PTC Therapeutics | Iovance Biotherapeutics vs. Krystal Biotech | Iovance Biotherapeutics vs. Sarepta Therapeutics | Iovance Biotherapeutics vs. Madrigal Pharmaceuticals |
| Genfit vs. Puma Biotechnology | Genfit vs. Iovance Biotherapeutics | Genfit vs. Sarepta Therapeutics | Genfit vs. Day One Biopharmaceuticals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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