Correlation Between Soken Chemical and GENFIT
Can any of the company-specific risk be diversified away by investing in both Soken Chemical 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 Soken Chemical and GENFIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and GENFIT, you can compare the effects of market volatilities on Soken Chemical 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 Soken Chemical with a short position of GENFIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and GENFIT.
Diversification Opportunities for Soken Chemical and GENFIT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and GENFIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering and GENFIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENFIT and Soken Chemical 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 Soken Chemical Engineering 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 Soken Chemical i.e., Soken Chemical and GENFIT go up and down completely randomly.
Pair Corralation between Soken Chemical and GENFIT
If you would invest (100.00) in GENFIT on September 25, 2024 and sell it today you would earn a total of 100.00 from holding GENFIT or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Soken Chemical Engineering vs. GENFIT
Performance |
| Timeline |
| Soken Chemical Engin |
| GENFIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Soken Chemical and GENFIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soken Chemical and GENFIT
The main advantage of trading using opposite Soken Chemical and GENFIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical 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.| Soken Chemical vs. Linde plc | Soken Chemical vs. Linde PLC | Soken Chemical vs. Air Liquide SA | Soken Chemical vs. The Sherwin Williams |
| GENFIT vs. DIVERSIFIED ROYALTY | GENFIT vs. Soken Chemical Engineering | GENFIT vs. X FAB Silicon Foundries | GENFIT vs. Sanyo Chemical Industries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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