Correlation Between Gensight Biologics and Sensorion
Can any of the company-specific risk be diversified away by investing in both Gensight Biologics and Sensorion 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 Sensorion 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 Sensorion SA, you can compare the effects of market volatilities on Gensight Biologics and Sensorion 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 Sensorion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gensight Biologics and Sensorion.
Diversification Opportunities for Gensight Biologics and Sensorion
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gensight and Sensorion is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gensight Biologics SA and Sensorion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensorion SA 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 Sensorion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensorion SA has no effect on the direction of Gensight Biologics i.e., Gensight Biologics and Sensorion go up and down completely randomly.
Pair Corralation between Gensight Biologics and Sensorion
Assuming the 90 days trading horizon Gensight Biologics SA is expected to generate 1.35 times more return on investment than Sensorion. However, Gensight Biologics is 1.35 times more volatile than Sensorion SA. It trades about 0.14 of its potential returns per unit of risk. Sensorion SA is currently generating about -0.19 per unit of risk. If you would invest 29.00 in Gensight Biologics SA on November 5, 2024 and sell it today you would earn a total of 2.00 from holding Gensight Biologics SA or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gensight Biologics SA vs. Sensorion SA
Performance |
| Timeline |
| Gensight Biologics |
| Sensorion SA |
Gensight Biologics and Sensorion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gensight Biologics and Sensorion
The main advantage of trading using opposite Gensight Biologics and Sensorion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gensight Biologics position performs unexpectedly, Sensorion 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 Sensorion will offset losses from the drop in Sensorion'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 |
| Sensorion vs. Poxel SA | Sensorion vs. Quantum Genomics SA | Sensorion vs. Biophytis SA | Sensorion vs. Gensight Biologics 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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