Correlation Between Crinetics Pharmaceuticals and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crinetics Pharmaceuticals and Genmab AS, you can compare the effects of market volatilities on Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crinetics Pharmaceuticals and Genmab AS.
Diversification Opportunities for Crinetics Pharmaceuticals and Genmab AS
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crinetics and Genmab is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Crinetics Pharmaceuticals and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals i.e., Crinetics Pharmaceuticals and Genmab AS go up and down completely randomly.
Pair Corralation between Crinetics Pharmaceuticals and Genmab AS
Given the investment horizon of 90 days Crinetics Pharmaceuticals is expected to generate 2.35 times more return on investment than Genmab AS. However, Crinetics Pharmaceuticals is 2.35 times more volatile than Genmab AS. It trades about 0.07 of its potential returns per unit of risk. Genmab AS is currently generating about -0.08 per unit of risk. If you would invest 2,178 in Crinetics Pharmaceuticals on August 27, 2024 and sell it today you would earn a total of 3,428 from holding Crinetics Pharmaceuticals or generate 157.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crinetics Pharmaceuticals vs. Genmab AS
Performance |
| Timeline |
| Crinetics Pharmaceuticals |
| Genmab AS |
Crinetics Pharmaceuticals and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crinetics Pharmaceuticals and Genmab AS
The main advantage of trading using opposite Crinetics Pharmaceuticals and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crinetics Pharmaceuticals 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.| Crinetics Pharmaceuticals vs. Eliem Therapeutics | Crinetics Pharmaceuticals vs. HCW Biologics | Crinetics Pharmaceuticals vs. Scpharmaceuticals | Crinetics Pharmaceuticals vs. Milestone Pharmaceuticals |
| Genmab AS vs. Eliem Therapeutics | Genmab AS vs. HCW Biologics | Genmab AS vs. Scpharmaceuticals | Genmab AS vs. Milestone Pharmaceuticals |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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