Correlation Between Innate Pharma and Genfit
Can any of the company-specific risk be diversified away by investing in both Innate Pharma 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 Innate Pharma and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innate Pharma and Genfit, you can compare the effects of market volatilities on Innate Pharma 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 Innate Pharma with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innate Pharma and Genfit.
Diversification Opportunities for Innate Pharma and Genfit
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innate and Genfit is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Innate Pharma and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Innate Pharma 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 Innate Pharma 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 Innate Pharma i.e., Innate Pharma and Genfit go up and down completely randomly.
Pair Corralation between Innate Pharma and Genfit
Given the investment horizon of 90 days Innate Pharma is expected to generate 1.87 times more return on investment than Genfit. However, Innate Pharma is 1.87 times more volatile than Genfit. It trades about 0.2 of its potential returns per unit of risk. Genfit is currently generating about -0.09 per unit of risk. If you would invest 176.00 in Innate Pharma on November 29, 2024 and sell it today you would earn a total of 50.00 from holding Innate Pharma or generate 28.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innate Pharma vs. Genfit
Performance |
| Timeline |
| Innate Pharma |
| Genfit |
Innate Pharma and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innate Pharma and Genfit
The main advantage of trading using opposite Innate Pharma and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innate Pharma 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.| Innate Pharma vs. HCW Biologics | Innate Pharma vs. Inhibrx | Innate Pharma vs. Anebulo Pharmaceuticals | Innate Pharma vs. Shattuck Labs |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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