Correlation Between Western Acquisition and Genfit
Can any of the company-specific risk be diversified away by investing in both Western Acquisition 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 Western Acquisition and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Acquisition Ventures and Genfit, you can compare the effects of market volatilities on Western Acquisition 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 Western Acquisition with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and Genfit.
Diversification Opportunities for Western Acquisition and Genfit
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Genfit is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Western Acquisition 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 Western Acquisition Ventures 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 Western Acquisition i.e., Western Acquisition and Genfit go up and down completely randomly.
Pair Corralation between Western Acquisition and Genfit
Given the investment horizon of 90 days Western Acquisition is expected to generate 3.35 times less return on investment than Genfit. But when comparing it to its historical volatility, Western Acquisition Ventures is 2.16 times less risky than Genfit. It trades about 0.02 of its potential returns per unit of risk. Genfit is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Genfit on September 3, 2024 and sell it today you would earn a total of 56.00 from holding Genfit or generate 15.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Acquisition Ventures vs. Genfit
Performance |
| Timeline |
| Western Acquisition |
| Genfit |
Western Acquisition and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and Genfit
The main advantage of trading using opposite Western Acquisition and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition 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 Western Acquisition Ventures 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |