Correlation Between Genfit SA and DBV Technologies

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

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

Diversification Opportunities for Genfit SA and DBV Technologies

-0.33

Correlation Coefficient

Genfit SA  DBV Technologies

Very good diversification

The 3 months correlation between Genfit and DBV is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Genfit SA and DBV Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies 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 DBV Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBV Technologies has no effect on the direction of Genfit SA i.e., Genfit SA and DBV Technologies go up and down completely randomly.

Pair Corralation between Genfit SA and DBV Technologies

Given the investment horizon of 90 days Genfit SA is expected to under-perform the DBV Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Genfit SA is 1.53 times less risky than DBV Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The DBV Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  895.00  in DBV Technologies on May 2, 2025 and sell it today you would lose (44.00) from holding DBV Technologies or give up 4.92% of portfolio value over 90 days.

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

Genfit SA  vs.  DBV Technologies

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 comparatively stable technical and fundamental indicators, Genfit SA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

DBV Technologies

Risk-Adjusted Performance

Insignificant

Over the last 90 days DBV Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, DBV Technologies is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Genfit SA and DBV Technologies

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

The idea behind Genfit SA and DBV Technologies 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..