Correlation Between Genfit SA and Annexon

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

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

Diversification Opportunities for Genfit SA and Annexon

-0.57

Correlation Coefficient

Genfit SA  Annexon

Excellent diversification

The 3 months correlation between Genfit and Annexon is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Genfit SA and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon 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 Annexon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexon has no effect on the direction of Genfit SA i.e., Genfit SA and Annexon go up and down completely randomly.

Pair Corralation between Genfit SA and Annexon

Given the investment horizon of 90 days Genfit SA is expected to under-perform the Annexon. But the stock apears to be less risky and, when comparing its historical volatility, Genfit SA is 1.43 times less risky than Annexon. The stock trades about -0.08 of its potential returns per unit of risk. The Annexon is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  165.00  in Annexon on May 6, 2025 and sell it today you would earn a total of  80.00  from holding Annexon or generate 48.48% return on investment over 90 days.

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

Genfit SA  vs.  Annexon

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 weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Annexon

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Annexon are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Annexon showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genfit SA and Annexon

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

The idea behind Genfit SA and Annexon 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.