Correlation Between Expand Energy and Genfit SA

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

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

Diversification Opportunities for Expand Energy and Genfit SA

0.15

Correlation Coefficient

Expand Energy  Genfit SA

Average diversification

The 3 months correlation between Expand and Genfit is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Genfit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit SA and Expand Energy 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 Expand Energy are associated (or correlated) with Genfit SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit SA has no effect on the direction of Expand Energy i.e., Expand Energy and Genfit SA go up and down completely randomly.

Pair Corralation between Expand Energy and Genfit SA

Considering the 90-day investment horizon Expand Energy is expected to generate 0.59 times more return on investment than Genfit SA. However, Expand Energy is 1.7 times less risky than Genfit SA. It trades about -0.04 of its potential returns per unit of risk. Genfit SA is currently generating about -0.05 per unit of risk. If you would invest  10,780  in Expand Energy on May 3, 2025 and sell it today you would lose (583.00) from holding Expand Energy or give up 5.41% of portfolio value over 90 days.

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

Expand Energy  vs.  Genfit SA

Expand Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Expand Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Expand Energy is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Genfit SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genfit SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Expand Energy and Genfit SA

The main advantage of trading using opposite Expand Energy and Genfit SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, Genfit SA 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 SA will offset losses from the drop in Genfit SA's long position.

The idea behind Expand Energy and Genfit SA 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 Commodity Directory module to find actively traded commodities issued by global exchanges.