Correlation Between Lifevantage and Genfit
Can any of the company-specific risk be diversified away by investing in both Lifevantage 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 Lifevantage and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Genfit, you can compare the effects of market volatilities on Lifevantage 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 Lifevantage with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Genfit.
Diversification Opportunities for Lifevantage and Genfit
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lifevantage and Genfit is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Lifevantage 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 Lifevantage 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 Lifevantage i.e., Lifevantage and Genfit go up and down completely randomly.
Pair Corralation between Lifevantage and Genfit
Given the investment horizon of 90 days Lifevantage is expected to generate 1.1 times more return on investment than Genfit. However, Lifevantage is 1.1 times more volatile than Genfit. It trades about 0.08 of its potential returns per unit of risk. Genfit is currently generating about 0.04 per unit of risk. If you would invest 704.00 in Lifevantage on September 4, 2024 and sell it today you would earn a total of 753.00 from holding Lifevantage or generate 106.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Lifevantage vs. Genfit
Performance |
| Timeline |
| Lifevantage |
| Genfit |
Lifevantage and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and Genfit
The main advantage of trading using opposite Lifevantage and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage 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.| Lifevantage vs. Seneca Foods Corp | Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods |
| Genfit vs. Candel Therapeutics | Genfit vs. Cingulate Warrants | Genfit vs. Unicycive Therapeutics | Genfit vs. Cardio Diagnostics Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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