Correlation Between Genmab AS and Azenta
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Azenta 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 Azenta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Azenta Inc, you can compare the effects of market volatilities on Genmab AS and Azenta 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 Azenta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Azenta.
Diversification Opportunities for Genmab AS and Azenta
Poor diversification
The 3 months correlation between Genmab and Azenta is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Azenta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azenta Inc 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 Azenta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azenta Inc has no effect on the direction of Genmab AS i.e., Genmab AS and Azenta go up and down completely randomly.
Pair Corralation between Genmab AS and Azenta
Given the investment horizon of 90 days Genmab AS is expected to under-perform the Azenta. But the stock apears to be less risky and, when comparing its historical volatility, Genmab AS is 1.98 times less risky than Azenta. The stock trades about -0.29 of its potential returns per unit of risk. The Azenta Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,191 in Azenta Inc on August 28, 2024 and sell it today you would earn a total of 367.00 from holding Azenta Inc or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Genmab AS vs. Azenta Inc
Performance |
| Timeline |
| Genmab AS |
| Azenta Inc |
Genmab AS and Azenta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Azenta
The main advantage of trading using opposite Genmab AS and Azenta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Azenta 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 Azenta will offset losses from the drop in Azenta's long position.| Genmab AS vs. Ascendis Pharma AS | Genmab AS vs. Apellis Pharmaceuticals | Genmab AS vs. BeiGene | Genmab AS vs. Akero Therapeutics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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