Correlation Between Genmab AS and Wave Life
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Wave Life 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 Wave Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Wave Life Sciences, you can compare the effects of market volatilities on Genmab AS and Wave Life 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 Wave Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Wave Life.
Diversification Opportunities for Genmab AS and Wave Life
Pay attention - limited upside
The 3 months correlation between Genmab and Wave is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Wave Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wave Life Sciences 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 Wave Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wave Life Sciences has no effect on the direction of Genmab AS i.e., Genmab AS and Wave Life go up and down completely randomly.
Pair Corralation between Genmab AS and Wave Life
Given the investment horizon of 90 days Genmab AS is expected to under-perform the Wave Life. But the stock apears to be less risky and, when comparing its historical volatility, Genmab AS is 2.81 times less risky than Wave Life. The stock trades about -0.29 of its potential returns per unit of risk. The Wave Life Sciences is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,499 in Wave Life Sciences on August 27, 2024 and sell it today you would lose (10.00) from holding Wave Life Sciences or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genmab AS vs. Wave Life Sciences
Performance |
| Timeline |
| Genmab AS |
| Wave Life Sciences |
Genmab AS and Wave Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Wave Life
The main advantage of trading using opposite Genmab AS and Wave Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Wave Life 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 Wave Life will offset losses from the drop in Wave Life's long position.| Genmab AS vs. Eliem Therapeutics | Genmab AS vs. HCW Biologics | Genmab AS vs. Scpharmaceuticals | Genmab AS vs. Milestone Pharmaceuticals |
| Wave Life vs. Capricor Therapeutics | Wave Life vs. Soleno Therapeutics | Wave Life vs. Bio Path Holdings | Wave Life 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |