Correlation Between Gensight Biologics and Integragen
Can any of the company-specific risk be diversified away by investing in both Gensight Biologics and Integragen 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 Gensight Biologics and Integragen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gensight Biologics SA and Integragen, you can compare the effects of market volatilities on Gensight Biologics and Integragen 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 Gensight Biologics with a short position of Integragen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gensight Biologics and Integragen.
Diversification Opportunities for Gensight Biologics and Integragen
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gensight and Integragen is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gensight Biologics SA and Integragen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integragen and Gensight Biologics 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 Gensight Biologics SA are associated (or correlated) with Integragen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integragen has no effect on the direction of Gensight Biologics i.e., Gensight Biologics and Integragen go up and down completely randomly.
Pair Corralation between Gensight Biologics and Integragen
Assuming the 90 days trading horizon Gensight Biologics SA is expected to generate 1.8 times more return on investment than Integragen. However, Gensight Biologics is 1.8 times more volatile than Integragen. It trades about 0.0 of its potential returns per unit of risk. Integragen is currently generating about -0.06 per unit of risk. If you would invest 73.00 in Gensight Biologics SA on September 12, 2024 and sell it today you would lose (42.00) from holding Gensight Biologics SA or give up 57.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gensight Biologics SA vs. Integragen
Performance |
| Timeline |
| Gensight Biologics |
| Integragen |
Gensight Biologics and Integragen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gensight Biologics and Integragen
The main advantage of trading using opposite Gensight Biologics and Integragen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gensight Biologics position performs unexpectedly, Integragen 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 Integragen will offset losses from the drop in Integragen's long position.| Gensight Biologics vs. DBV Technologies SA | Gensight Biologics vs. Inventiva SA | Gensight Biologics vs. Quantum Genomics SA | Gensight Biologics vs. Abivax SA |
| Integragen vs. Gensight Biologics SA | Integragen vs. Innate Pharma | Integragen vs. Poxel SA | Integragen vs. Nanobiotix SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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