Correlation Between Genmab AS and Investin Optimal
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Investin Optimal 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 Investin Optimal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Investin Optimal Stabil, you can compare the effects of market volatilities on Genmab AS and Investin Optimal 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 Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Investin Optimal.
Diversification Opportunities for Genmab AS and Investin Optimal
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genmab and Investin is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Investin Optimal Stabil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Stabil 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 Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Stabil has no effect on the direction of Genmab AS i.e., Genmab AS and Investin Optimal go up and down completely randomly.
Pair Corralation between Genmab AS and Investin Optimal
Assuming the 90 days trading horizon Genmab AS is expected to under-perform the Investin Optimal. In addition to that, Genmab AS is 7.95 times more volatile than Investin Optimal Stabil. It trades about -0.12 of its total potential returns per unit of risk. Investin Optimal Stabil is currently generating about 0.22 per unit of volatility. If you would invest 14,485 in Investin Optimal Stabil on September 20, 2024 and sell it today you would earn a total of 432.00 from holding Investin Optimal Stabil or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Genmab AS vs. Investin Optimal Stabil
Performance |
| Timeline |
| Genmab AS |
| Investin Optimal Stabil |
Genmab AS and Investin Optimal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Investin Optimal
The main advantage of trading using opposite Genmab AS and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal'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 |
| Investin Optimal vs. Vestjysk Bank AS | Investin Optimal vs. Laan Spar Bank | Investin Optimal vs. PARKEN Sport Entertainment | Investin Optimal vs. Kreditbanken 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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