Correlation Between DFDS AS and Genmab AS
Can any of the company-specific risk be diversified away by investing in both DFDS AS 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 DFDS AS and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFDS AS and Genmab AS, you can compare the effects of market volatilities on DFDS AS 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 DFDS AS with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFDS AS and Genmab AS.
Diversification Opportunities for DFDS AS and Genmab AS
Poor diversification
The 3 months correlation between DFDS and Genmab is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DFDS AS and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and DFDS AS 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 DFDS AS 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 DFDS AS i.e., DFDS AS and Genmab AS go up and down completely randomly.
Pair Corralation between DFDS AS and Genmab AS
Assuming the 90 days trading horizon DFDS AS is expected to generate 1.02 times more return on investment than Genmab AS. However, DFDS AS is 1.02 times more volatile than Genmab AS. It trades about 0.12 of its potential returns per unit of risk. Genmab AS is currently generating about -0.07 per unit of risk. If you would invest 13,700 in DFDS AS on September 13, 2024 and sell it today you would earn a total of 570.00 from holding DFDS AS or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DFDS AS vs. Genmab AS
Performance |
| Timeline |
| DFDS AS |
| Genmab AS |
DFDS AS and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFDS AS and Genmab AS
The main advantage of trading using opposite DFDS AS and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFDS AS 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.| DFDS AS vs. FLSmidth Co | DFDS AS vs. NKT AS | DFDS AS vs. Dampskibsselskabet Norden AS | DFDS AS vs. GN Store Nord |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |