Correlation Between Genmab AS and Maj Invest
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Maj 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 Maj 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 Maj Invest Pension, you can compare the effects of market volatilities on Genmab AS and Maj 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Maj Invest.
Diversification Opportunities for Genmab AS and Maj Invest
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genmab and Maj is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Maj Invest Pension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Pension 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Pension has no effect on the direction of Genmab AS i.e., Genmab AS and Maj Invest go up and down completely randomly.
Pair Corralation between Genmab AS and Maj Invest
Assuming the 90 days trading horizon Genmab AS is expected to under-perform the Maj Invest. In addition to that, Genmab AS is 4.25 times more volatile than Maj Invest Pension. It trades about -0.03 of its total potential returns per unit of risk. Maj Invest Pension is currently generating about 0.32 per unit of volatility. If you would invest 12,452 in Maj Invest Pension on September 2, 2024 and sell it today you would earn a total of 393.00 from holding Maj Invest Pension or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genmab AS vs. Maj Invest Pension
Performance |
| Timeline |
| Genmab AS |
| Maj Invest Pension |
Genmab AS and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Maj Invest
The main advantage of trading using opposite Genmab AS and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj 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 |
| Maj Invest vs. Kreditbanken AS | Maj Invest vs. Scandinavian Tobacco Group | Maj Invest vs. Nordfyns Bank AS | Maj Invest vs. North Media 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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