Correlation Between Genmab AS and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Jyske 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 Jyske 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 Jyske Invest Nye, you can compare the effects of market volatilities on Genmab AS and Jyske 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 Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Jyske Invest.
Diversification Opportunities for Genmab AS and Jyske Invest
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genmab and Jyske is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Jyske Invest Nye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Nye 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 Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Nye has no effect on the direction of Genmab AS i.e., Genmab AS and Jyske Invest go up and down completely randomly.
Pair Corralation between Genmab AS and Jyske Invest
Assuming the 90 days trading horizon Genmab AS is expected to under-perform the Jyske Invest. In addition to that, Genmab AS is 3.78 times more volatile than Jyske Invest Nye. It trades about -0.07 of its total potential returns per unit of risk. Jyske Invest Nye is currently generating about 0.06 per unit of volatility. If you would invest 8,718 in Jyske Invest Nye on August 28, 2024 and sell it today you would earn a total of 1,158 from holding Jyske Invest Nye or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Genmab AS vs. Jyske Invest Nye
Performance |
| Timeline |
| Genmab AS |
| Jyske Invest Nye |
Genmab AS and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Jyske Invest
The main advantage of trading using opposite Genmab AS and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Jyske 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 Jyske Invest will offset losses from the drop in Jyske Invest'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 |
| Jyske Invest vs. Alefarm Brewing AS | Jyske Invest vs. Scandinavian Tobacco Group | Jyske Invest vs. Laan Spar Bank | Jyske Invest vs. NTG Nordic Transport |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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