Correlation Between INmune Bio and Genfit

Can any of the company-specific risk be diversified away by investing in both INmune Bio 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 INmune Bio and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INmune Bio and Genfit, you can compare the effects of market volatilities on INmune Bio 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 INmune Bio with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of INmune Bio and Genfit.

Diversification Opportunities for INmune Bio and Genfit

-0.34

Correlation Coefficient

INmune Bio  Genfit

Very good diversification

The 3 months correlation between INmune and Genfit is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding INmune Bio and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and INmune Bio 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 INmune Bio 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 INmune Bio i.e., INmune Bio and Genfit go up and down completely randomly.

Pair Corralation between INmune Bio and Genfit

Given the investment horizon of 90 days INmune Bio is expected to under-perform the Genfit. In addition to that, INmune Bio is 1.06 times more volatile than Genfit. It trades about -0.24 of its total potential returns per unit of risk. Genfit is currently generating about 0.34 per unit of volatility. If you would invest  421.00  in Genfit on June 29, 2024 and sell it today you would earn a total of  149.00  from holding Genfit or generate 35.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

INmune Bio  vs.  Genfit

INmune Bio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INmune Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in October 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Genfit

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genfit are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Genfit unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with INmune Bio and Genfit

The main advantage of trading using opposite INmune Bio and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INmune Bio 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 INmune Bio 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.