Correlation Between Genfit SA and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Genfit SA and Dow Jones 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 Genfit SA and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit SA and Dow Jones Industrial, you can compare the effects of market volatilities on Genfit SA and Dow Jones 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 Genfit SA with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit SA and Dow Jones.
Diversification Opportunities for Genfit SA and Dow Jones
Very good diversification
The 3 months correlation between Genfit and Dow is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Genfit SA and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Genfit SA 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 Genfit SA are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Genfit SA i.e., Genfit SA and Dow Jones go up and down completely randomly.
Pair Corralation between Genfit SA and Dow Jones
Assuming the 90 days trading horizon Genfit SA is expected to generate 13.11 times more return on investment than Dow Jones. However, Genfit SA is 13.11 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 396.00 in Genfit SA on September 19, 2024 and sell it today you would lose (42.00) from holding Genfit SA or give up 10.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.51% |
| Values | Daily Returns |
Genfit SA vs. Dow Jones Industrial
Performance |
| Timeline |
Genfit SA and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Genfit SA
Pair trading matchups for Genfit SA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Genfit SA and Dow Jones
The main advantage of trading using opposite Genfit SA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit SA position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Genfit SA vs. Summit Hotel Properties | Genfit SA vs. NORWEGIAN AIR SHUT | Genfit SA vs. Host Hotels Resorts | Genfit SA vs. ALTAIR RES INC |
| Dow Jones vs. Mangazeya Mining | Dow Jones vs. Summit Materials | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. AMCON Distributing |
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.
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