Correlation Between Genmab AS and Dataproces Group
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Dataproces Group 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 Genmab AS and Dataproces Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Dataproces Group AS, you can compare the effects of market volatilities on Genmab AS and Dataproces Group 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 Genmab AS with a short position of Dataproces Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Dataproces Group.
Diversification Opportunities for Genmab AS and Dataproces Group
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genmab and Dataproces is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group and Genmab 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 Genmab AS are associated (or correlated) with Dataproces Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataproces Group has no effect on the direction of Genmab AS i.e., Genmab AS and Dataproces Group go up and down completely randomly.
Pair Corralation between Genmab AS and Dataproces Group
Assuming the 90 days trading horizon Genmab AS is expected to under-perform the Dataproces Group. But the stock apears to be less risky and, when comparing its historical volatility, Genmab AS is 1.2 times less risky than Dataproces Group. The stock trades about -0.07 of its potential returns per unit of risk. The Dataproces Group AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 585.00 in Dataproces Group AS on September 18, 2024 and sell it today you would earn a total of 10.00 from holding Dataproces Group AS or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genmab AS vs. Dataproces Group AS
Performance |
| Timeline |
| Genmab AS |
| Dataproces Group |
Genmab AS and Dataproces Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Dataproces Group
The main advantage of trading using opposite Genmab AS and Dataproces Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Dataproces Group 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 Dataproces Group will offset losses from the drop in Dataproces Group's long position.| Genmab AS vs. Ambu AS | Genmab AS vs. DSV Panalpina AS | Genmab AS vs. Bavarian Nordic | Genmab AS vs. GN Store Nord |
| Dataproces Group vs. GN Store Nord | Dataproces Group vs. Ambu AS | Dataproces Group vs. ROCKWOOL International AS | Dataproces Group vs. Genmab AS |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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