Correlation Between Enliven Therapeutics and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Enliven Therapeutics 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 Enliven Therapeutics and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enliven Therapeutics and Genmab AS, you can compare the effects of market volatilities on Enliven Therapeutics 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 Enliven Therapeutics with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enliven Therapeutics and Genmab AS.
Diversification Opportunities for Enliven Therapeutics and Genmab AS
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enliven and Genmab is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Enliven Therapeutics and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Enliven Therapeutics 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 Enliven Therapeutics 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 Enliven Therapeutics i.e., Enliven Therapeutics and Genmab AS go up and down completely randomly.
Pair Corralation between Enliven Therapeutics and Genmab AS
Given the investment horizon of 90 days Enliven Therapeutics is expected to generate 2.34 times more return on investment than Genmab AS. However, Enliven Therapeutics is 2.34 times more volatile than Genmab AS. It trades about 0.06 of its potential returns per unit of risk. Genmab AS is currently generating about -0.1 per unit of risk. If you would invest 1,830 in Enliven Therapeutics on September 3, 2024 and sell it today you would earn a total of 608.00 from holding Enliven Therapeutics or generate 33.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enliven Therapeutics vs. Genmab AS
Performance |
| Timeline |
| Enliven Therapeutics |
| Genmab AS |
Enliven Therapeutics and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enliven Therapeutics and Genmab AS
The main advantage of trading using opposite Enliven Therapeutics and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enliven Therapeutics 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.| Enliven Therapeutics vs. DiaMedica Therapeutics | Enliven Therapeutics vs. Lyra Therapeutics | Enliven Therapeutics vs. Centessa Pharmaceuticals PLC |
| Genmab AS vs. DiaMedica Therapeutics | Genmab AS vs. Lyra Therapeutics | Genmab AS vs. Centessa Pharmaceuticals PLC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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