Correlation Between Genmab AS and Harrow Health
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Harrow Health 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 Harrow Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Harrow Health, you can compare the effects of market volatilities on Genmab AS and Harrow Health 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 Harrow Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Harrow Health.
Diversification Opportunities for Genmab AS and Harrow Health
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genmab and Harrow is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Harrow Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harrow Health 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 Harrow Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harrow Health has no effect on the direction of Genmab AS i.e., Genmab AS and Harrow Health go up and down completely randomly.
Pair Corralation between Genmab AS and Harrow Health
Given the investment horizon of 90 days Genmab AS is expected to under-perform the Harrow Health. But the stock apears to be less risky and, when comparing its historical volatility, Genmab AS is 3.01 times less risky than Harrow Health. The stock trades about -0.21 of its potential returns per unit of risk. The Harrow Health is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 4,655 in Harrow Health on August 30, 2024 and sell it today you would lose (408.00) from holding Harrow Health or give up 8.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genmab AS vs. Harrow Health
Performance |
| Timeline |
| Genmab AS |
| Harrow Health |
Genmab AS and Harrow Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Harrow Health
The main advantage of trading using opposite Genmab AS and Harrow Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Harrow Health 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 Harrow Health will offset losses from the drop in Harrow Health's long position.| Genmab AS vs. Ascendis Pharma AS | Genmab AS vs. Apellis Pharmaceuticals | Genmab AS vs. BeiGene | Genmab AS vs. Akero Therapeutics |
| Harrow Health vs. Apyx Medical | Harrow Health vs. Eton Pharmaceuticals | Harrow Health vs. Scpharmaceuticals | Harrow Health vs. Fennec Pharmaceuticals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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