Correlation Between Inflection Point and Genfit
Can any of the company-specific risk be diversified away by investing in both Inflection Point 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 Inflection Point and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and Genfit, you can compare the effects of market volatilities on Inflection Point 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 Inflection Point with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Genfit.
Diversification Opportunities for Inflection Point and Genfit
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inflection and Genfit is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Inflection Point 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 Inflection Point Acquisition 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 Inflection Point i.e., Inflection Point and Genfit go up and down completely randomly.
Pair Corralation between Inflection Point and Genfit
Assuming the 90 days horizon Inflection Point is expected to generate 4.54 times less return on investment than Genfit. But when comparing it to its historical volatility, Inflection Point Acquisition is 50.13 times less risky than Genfit. It trades about 0.18 of its potential returns per unit of risk. Genfit is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 434.00 in Genfit on August 30, 2024 and sell it today you would lose (7.00) from holding Genfit or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Genfit
Performance |
| Timeline |
| Inflection Point Acq |
| Genfit |
Inflection Point and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Genfit
The main advantage of trading using opposite Inflection Point and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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.| Inflection Point vs. PowerUp Acquisition Corp | Inflection Point vs. HUMANA INC | Inflection Point vs. Aquagold International | Inflection Point vs. Barloworld Ltd ADR |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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