Correlation Between Genmab AS and IA Invest

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Can any of the company-specific risk be diversified away by investing in both Genmab AS and IA Invest 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 IA Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and IA Invest Peruma, you can compare the effects of market volatilities on Genmab AS and IA Invest 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 IA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and IA Invest.

Diversification Opportunities for Genmab AS and IA Invest

GenmabIAIPGADiversified AwayGenmabIAIPGADiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Genmab and IAIPGA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and IA Invest Peruma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA Invest Peruma 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 IA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA Invest Peruma has no effect on the direction of Genmab AS i.e., Genmab AS and IA Invest go up and down completely randomly.

Pair Corralation between Genmab AS and IA Invest

If you would invest  148,800  in Genmab AS on September 28, 2024 and sell it today you would lose (300.00) from holding Genmab AS or give up 0.2% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Genmab AS  vs.  IA Invest Peruma

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -12-10-8-6-4-20
JavaScript chart by amCharts 3.21.15GMAB IAIPGA
       Timeline  
Genmab AS 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Genmab AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1,4001,4501,5001,5501,6001,650
IA Invest Peruma 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days IA Invest Peruma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, IA Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Genmab AS and IA Invest Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.56-1.92-1.28-0.63-0.0099170.581.181.782.38 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15GMAB IAIPGA
       Returns  

Pair Trading with Genmab AS and IA Invest

The main advantage of trading using opposite Genmab AS and IA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, IA Invest 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 IA Invest will offset losses from the drop in IA Invest's long position.
The idea behind Genmab AS and IA Invest Peruma pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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