Correlation Between Bavarian Nordic and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Bavarian Nordic and Genmab AS 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 Bavarian Nordic and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bavarian Nordic and Genmab AS, you can compare the effects of market volatilities on Bavarian Nordic and Genmab AS 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 Bavarian Nordic with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bavarian Nordic and Genmab AS.
Diversification Opportunities for Bavarian Nordic and Genmab AS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bavarian and Genmab is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bavarian Nordic and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Bavarian Nordic 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 Bavarian Nordic are associated (or correlated) with Genmab AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genmab AS has no effect on the direction of Bavarian Nordic i.e., Bavarian Nordic and Genmab AS go up and down completely randomly.
Pair Corralation between Bavarian Nordic and Genmab AS
Assuming the 90 days trading horizon Bavarian Nordic is expected to generate 1.52 times less return on investment than Genmab AS. In addition to that, Bavarian Nordic is 1.16 times more volatile than Genmab AS. It trades about 0.07 of its total potential returns per unit of risk. Genmab AS is currently generating about 0.11 per unit of volatility. If you would invest 145,400 in Genmab AS on October 20, 2024 and sell it today you would earn a total of 5,550 from holding Genmab AS or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bavarian Nordic vs. Genmab AS
Performance |
| Timeline |
| Bavarian Nordic |
| Genmab AS |
Bavarian Nordic and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bavarian Nordic and Genmab AS
The main advantage of trading using opposite Bavarian Nordic and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bavarian Nordic position performs unexpectedly, Genmab AS 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 Genmab AS will offset losses from the drop in Genmab AS's long position.| Bavarian Nordic vs. Ambu AS | Bavarian Nordic vs. Danske Bank AS | Bavarian Nordic vs. Genmab AS | Bavarian Nordic vs. DSV Panalpina AS |
| Genmab AS vs. Ambu AS | Genmab AS vs. DSV Panalpina AS | Genmab AS vs. Bavarian Nordic | Genmab AS vs. GN Store Nord |
Check out your portfolio center.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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |