Correlation Between Genmab AS and Formuepleje Mix
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Formuepleje Mix 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 Formuepleje Mix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Formuepleje Mix Medium, you can compare the effects of market volatilities on Genmab AS and Formuepleje Mix 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 Formuepleje Mix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Formuepleje Mix.
Diversification Opportunities for Genmab AS and Formuepleje Mix
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genmab and Formuepleje is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Formuepleje Mix Medium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formuepleje Mix Medium 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 Formuepleje Mix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formuepleje Mix Medium has no effect on the direction of Genmab AS i.e., Genmab AS and Formuepleje Mix go up and down completely randomly.
Pair Corralation between Genmab AS and Formuepleje Mix
Assuming the 90 days trading horizon Genmab AS is expected to under-perform the Formuepleje Mix. In addition to that, Genmab AS is 3.69 times more volatile than Formuepleje Mix Medium. It trades about -0.04 of its total potential returns per unit of risk. Formuepleje Mix Medium is currently generating about 0.07 per unit of volatility. If you would invest 24,690 in Formuepleje Mix Medium on December 11, 2024 and sell it today you would earn a total of 3,950 from holding Formuepleje Mix Medium or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.18% |
| Values | Daily Returns |
Genmab AS vs. Formuepleje Mix Medium
Performance |
| Timeline |
| Genmab AS |
| Formuepleje Mix Medium |
Genmab AS and Formuepleje Mix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Formuepleje Mix
The main advantage of trading using opposite Genmab AS and Formuepleje Mix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Formuepleje Mix 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 Formuepleje Mix will offset losses from the drop in Formuepleje Mix's long position.| Genmab AS vs. Ambu AS | ||
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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