Correlation Between Rumble and Genfit
Can any of the company-specific risk be diversified away by investing in both Rumble 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 Rumble and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rumble Inc and Genfit, you can compare the effects of market volatilities on Rumble 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 Rumble with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rumble and Genfit.
Diversification Opportunities for Rumble and Genfit
Very good diversification
The 3 months correlation between Rumble and Genfit is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Rumble 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 Rumble Inc 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 Rumble i.e., Rumble and Genfit go up and down completely randomly.
Pair Corralation between Rumble and Genfit
Considering the 90-day investment horizon Rumble Inc is expected to generate 1.41 times more return on investment than Genfit. However, Rumble is 1.41 times more volatile than Genfit. It trades about 0.06 of its potential returns per unit of risk. Genfit is currently generating about 0.02 per unit of risk. If you would invest 491.00 in Rumble Inc on September 12, 2024 and sell it today you would earn a total of 322.50 from holding Rumble Inc or generate 65.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rumble Inc vs. Genfit
Performance |
| Timeline |
| Rumble Inc |
| Genfit |
Rumble and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rumble and Genfit
The main advantage of trading using opposite Rumble and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rumble 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.The idea behind Rumble Inc and Genfit pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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