Correlation Between Genmab AS and Cytokinetics
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Cytokinetics 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 Cytokinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Cytokinetics, you can compare the effects of market volatilities on Genmab AS and Cytokinetics 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 Cytokinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Cytokinetics.
Diversification Opportunities for Genmab AS and Cytokinetics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genmab and Cytokinetics is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Cytokinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytokinetics 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 Cytokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytokinetics has no effect on the direction of Genmab AS i.e., Genmab AS and Cytokinetics go up and down completely randomly.
Pair Corralation between Genmab AS and Cytokinetics
Given the investment horizon of 90 days Genmab AS is expected to under-perform the Cytokinetics. In addition to that, Genmab AS is 1.18 times more volatile than Cytokinetics. It trades about -0.07 of its total potential returns per unit of risk. Cytokinetics is currently generating about 0.13 per unit of volatility. If you would invest 4,704 in Cytokinetics on November 1, 2024 and sell it today you would earn a total of 293.00 from holding Cytokinetics or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genmab AS vs. Cytokinetics
Performance |
| Timeline |
| Genmab AS |
| Cytokinetics |
Genmab AS and Cytokinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Cytokinetics
The main advantage of trading using opposite Genmab AS and Cytokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Cytokinetics 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 Cytokinetics will offset losses from the drop in Cytokinetics' long position.| Genmab AS vs. Ascendis Pharma AS | Genmab AS vs. Apellis Pharmaceuticals | Genmab AS vs. Akero Therapeutics | Genmab AS vs. Blueprint Medicines Corp |
| Cytokinetics vs. Edgewise Therapeutics | Cytokinetics vs. Dyne Therapeutics | Cytokinetics vs. Stoke Therapeutics | Cytokinetics vs. Pliant 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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