Correlation Between Genmab AS and Harboes Bryggeri
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Harboes Bryggeri 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 Harboes Bryggeri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Harboes Bryggeri AS, you can compare the effects of market volatilities on Genmab AS and Harboes Bryggeri 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 Harboes Bryggeri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Harboes Bryggeri.
Diversification Opportunities for Genmab AS and Harboes Bryggeri
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Genmab and Harboes is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Harboes Bryggeri AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harboes Bryggeri 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 Harboes Bryggeri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harboes Bryggeri has no effect on the direction of Genmab AS i.e., Genmab AS and Harboes Bryggeri go up and down completely randomly.
Pair Corralation between Genmab AS and Harboes Bryggeri
Assuming the 90 days trading horizon Genmab AS is expected to under-perform the Harboes Bryggeri. But the stock apears to be less risky and, when comparing its historical volatility, Genmab AS is 1.77 times less risky than Harboes Bryggeri. The stock trades about 0.0 of its potential returns per unit of risk. The Harboes Bryggeri AS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 15,150 in Harboes Bryggeri AS on September 1, 2024 and sell it today you would earn a total of 2,100 from holding Harboes Bryggeri AS or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Genmab AS vs. Harboes Bryggeri AS
Performance |
| Timeline |
| Genmab AS |
| Harboes Bryggeri |
Genmab AS and Harboes Bryggeri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Harboes Bryggeri
The main advantage of trading using opposite Genmab AS and Harboes Bryggeri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Harboes Bryggeri 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 Harboes Bryggeri will offset losses from the drop in Harboes Bryggeri'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 |
| Harboes Bryggeri vs. Royal Unibrew AS | Harboes Bryggeri vs. Matas AS | Harboes Bryggeri vs. Nnit AS | Harboes Bryggeri vs. DFDS 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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