Correlation Between Genmab AS and Enliven Therapeutics
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Enliven Therapeutics 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 Enliven Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Enliven Therapeutics, you can compare the effects of market volatilities on Genmab AS and Enliven Therapeutics 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 Enliven Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Enliven Therapeutics.
Diversification Opportunities for Genmab AS and Enliven Therapeutics
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genmab and Enliven is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Enliven Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enliven Therapeutics 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 Enliven Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enliven Therapeutics has no effect on the direction of Genmab AS i.e., Genmab AS and Enliven Therapeutics go up and down completely randomly.
Pair Corralation between Genmab AS and Enliven Therapeutics
Given the investment horizon of 90 days Genmab AS is expected to generate 0.62 times more return on investment than Enliven Therapeutics. However, Genmab AS is 1.61 times less risky than Enliven Therapeutics. It trades about -0.29 of its potential returns per unit of risk. Enliven Therapeutics is currently generating about -0.23 per unit of risk. If you would invest 2,314 in Genmab AS on August 28, 2024 and sell it today you would lose (235.00) from holding Genmab AS or give up 10.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genmab AS vs. Enliven Therapeutics
Performance |
| Timeline |
| Genmab AS |
| Enliven Therapeutics |
Genmab AS and Enliven Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Enliven Therapeutics
The main advantage of trading using opposite Genmab AS and Enliven Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Enliven Therapeutics 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 Enliven Therapeutics will offset losses from the drop in Enliven Therapeutics' long position.| Genmab AS vs. Eliem Therapeutics | Genmab AS vs. HCW Biologics | Genmab AS vs. Scpharmaceuticals | Genmab AS vs. Milestone Pharmaceuticals |
| Enliven Therapeutics vs. Capricor Therapeutics | Enliven Therapeutics vs. Soleno Therapeutics | Enliven Therapeutics vs. Bio Path Holdings | Enliven Therapeutics vs. Moleculin Biotech |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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