Novo Competitors
| NVO Stock | USD 47.42 1.03 2.13% |
Novo Nordisk vs GlaxoSmithKline PLC Correlation
Very good diversification
The correlation between Novo Nordisk AS and GSK is -0.24 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Novo Nordisk AS and GSK in the same portfolio, assuming nothing else is changed.
Moving against Novo Stock
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Novo Nordisk's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Novo Nordisk Competition Correlation Matrix
Typically, diversification allows investors to combine positions across different asset classes to reduce overall portfolio risk. Correlation between Novo Nordisk and its competitors represents the degree of relationship between the price movements of corresponding stocks. A correlation of about +1.0 implies that the price of Novo and its corresponding peer move in tandem. A correlation of -1.0 means that prices move in opposite directions. A correlation of close to zero suggests that the price movements of assets are uncorrelated; in other words, the historical price movement of Novo Nordisk AS does not affect the price movement of the other competitor.
High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Novo Stock performing well and Novo Nordisk Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Novo Nordisk's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| MRK | 1.27 | 0.38 | 0.26 | 0.64 | 0.97 | 2.93 | 8.74 | |||
| NVS | 0.91 | 0.39 | 0.36 | 0.95 | 0.44 | 2.57 | 6.07 | |||
| ABT | 0.96 | (0.21) | 0.00 | (0.90) | 0.00 | 1.77 | 12.43 | |||
| AZN | 1.75 | 0.18 | 0.07 | 0.37 | 1.90 | 4.09 | 10.86 | |||
| GILD | 1.44 | 0.28 | 0.15 | 0.89 | 1.27 | 3.01 | 8.38 | |||
| PFE | 1.09 | 0.05 | 0.03 | 0.13 | 1.26 | 2.40 | 6.01 | |||
| TMO | 1.16 | (0.29) | 0.00 | (0.23) | 0.00 | 2.39 | 7.20 | |||
| AMGN | 1.31 | 0.14 | 0.07 | 0.25 | 1.47 | 3.47 | 11.13 | |||
| SNY | 1.13 | (0.21) | 0.00 | (0.26) | 0.00 | 1.82 | 6.81 | |||
| GSK | 1.21 | 0.35 | 0.24 | 0.62 | 0.94 | 3.14 | 9.32 |
Novo Nordisk Competitive Analysis
The better you understand Novo Nordisk competitors, the better chance you have of utilizing it as a position in your portfolios. From an individual investor's perspective, Novo Nordisk's competitive analysis can cover a whole range of metrics. Some of these will be more critical depending on who you are as an investor and how you react to market volatility. However, if you are locking your investment sandscape to a long-term horizon, comparing the fundamental indicator across Novo Nordisk's competition over several years is one of the best ways to analyze its investment potential.| Better Than Average | Worse Than Peers | View Performance Chart |
Novo Nordisk Competition Performance Charts
Five steps to successful analysis of Novo Nordisk Competition
Novo Nordisk's competitive analysis is the process of researching and evaluating its competitive landscape. It provides an understanding of the strengths, weaknesses, opportunities, and threats (SWOT) faced by Novo Nordisk AS in relation to its competition. Novo Nordisk's competition analysis typically involves several steps, including:- Identifying the key players in the market: This involves identifying the major competitors of Novo Nordisk in the market, both direct and indirect, as well as new entrants and disruptive technologies.
- Assessing the strengths and weaknesses of each competitor: This involves evaluating each competitor's strengths and weaknesses in areas such as product offerings, market share, brand recognition, financial performance, and distribution channels.
- Understanding the competitive environment: This involves evaluating the regulatory environment, economic conditions, and other factors that may impact Novo Nordisk's competitive landscape.
- Identifying opportunities and threats: This involves using the information gathered during the analysis to identify opportunities and threats to Novo Nordisk AS, and developing a strategy to address them.
- Evaluating the competitive landscape: This involves understanding the competitive dynamics of the market, such as pricing, marketing, and distribution strategies, as well as analyzing the competitive advantage of each competitor.
Complement your Novo Nordisk position
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Check out Novo Nordisk Correlation with its peers. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Will Pharmaceuticals sector continue expanding? Could Novo diversify its offerings? Factors like these will boost the valuation of Novo Nordisk. Anticipated expansion of Novo directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Novo Nordisk data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Understanding Novo Nordisk AS requires distinguishing between market price and book value, where the latter reflects Novo's accounting equity. The concept of intrinsic value - what Novo Nordisk's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Novo Nordisk's price substantially above or below its fundamental value.
It's important to distinguish between Novo Nordisk's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Novo Nordisk should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Novo Nordisk's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.