Correlation Between Opthea and Genfit
Can any of the company-specific risk be diversified away by investing in both Opthea 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 Opthea and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opthea and Genfit, you can compare the effects of market volatilities on Opthea 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 Opthea with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opthea and Genfit.
Diversification Opportunities for Opthea and Genfit
Almost no diversification
The 3 months correlation between Opthea and Genfit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Opthea and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Opthea 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 Opthea 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 Opthea i.e., Opthea and Genfit go up and down completely randomly.
Pair Corralation between Opthea and Genfit
Considering the 90-day investment horizon Opthea is expected to generate 1.08 times more return on investment than Genfit. However, Opthea is 1.08 times more volatile than Genfit. It trades about 0.02 of its potential returns per unit of risk. Genfit is currently generating about 0.02 per unit of risk. If you would invest 313.00 in Opthea on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Opthea or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.59% |
| Values | Daily Returns |
Opthea vs. Genfit
Performance |
| Timeline |
| Opthea |
| Genfit |
Opthea and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opthea and Genfit
The main advantage of trading using opposite Opthea and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opthea 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.| Opthea vs. Molecular Partners AG | Opthea vs. MediciNova | Opthea vs. Anebulo Pharmaceuticals | Opthea vs. Champions Oncology |
| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Scpharmaceuticals | Genfit vs. Milestone 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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