Correlation Between Banco Macro and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Banco Macro 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 Banco Macro and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Macro SA and Genmab AS, you can compare the effects of market volatilities on Banco Macro 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 Banco Macro with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Genmab AS.
Diversification Opportunities for Banco Macro and Genmab AS
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Genmab is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Banco Macro 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 Banco Macro SA 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 Banco Macro i.e., Banco Macro and Genmab AS go up and down completely randomly.
Pair Corralation between Banco Macro and Genmab AS
Considering the 90-day investment horizon Banco Macro SA is expected to generate 1.32 times more return on investment than Genmab AS. However, Banco Macro is 1.32 times more volatile than Genmab AS. It trades about 0.15 of its potential returns per unit of risk. Genmab AS is currently generating about -0.05 per unit of risk. If you would invest 2,011 in Banco Macro SA on September 3, 2024 and sell it today you would earn a total of 6,757 from holding Banco Macro SA or generate 336.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Macro SA vs. Genmab AS
Performance |
| Timeline |
| Banco Macro SA |
| Genmab AS |
Banco Macro and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Genmab AS
The main advantage of trading using opposite Banco Macro and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro 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.| Banco Macro vs. JPMorgan Chase Co | Banco Macro vs. Citigroup | Banco Macro vs. Wells Fargo | Banco Macro vs. Toronto Dominion Bank |
| Genmab AS vs. Inhibikase Therapeutics | Genmab AS vs. Purple Biotech | Genmab AS vs. Synaptogenix | Genmab AS vs. Legend Biotech Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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