Correlation Between OZ Minerals and Genfit
Can any of the company-specific risk be diversified away by investing in both OZ Minerals 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 OZ Minerals and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OZ Minerals Limited and Genfit, you can compare the effects of market volatilities on OZ Minerals 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 OZ Minerals with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of OZ Minerals and Genfit.
Diversification Opportunities for OZ Minerals and Genfit
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OZMLF and Genfit is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding OZ Minerals Limited and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and OZ Minerals 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 OZ Minerals Limited 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 OZ Minerals i.e., OZ Minerals and Genfit go up and down completely randomly.
Pair Corralation between OZ Minerals and Genfit
If you would invest 1,900 in OZ Minerals Limited on September 18, 2024 and sell it today you would earn a total of 0.00 from holding OZ Minerals Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
OZ Minerals Limited vs. Genfit
Performance |
| Timeline |
| OZ Minerals Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genfit |
OZ Minerals and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OZ Minerals and Genfit
The main advantage of trading using opposite OZ Minerals and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OZ Minerals 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.| OZ Minerals vs. MACOM Technology Solutions | OZ Minerals vs. NuRAN Wireless | OZ Minerals vs. Kulicke and Soffa | OZ Minerals vs. Analog Devices |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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