Correlation Between Genmab A/S and Gemina Laboratories
Can any of the company-specific risk be diversified away by investing in both Genmab A/S and Gemina Laboratories 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 A/S and Gemina Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Gemina Laboratories, you can compare the effects of market volatilities on Genmab A/S and Gemina Laboratories 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 A/S with a short position of Gemina Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab A/S and Gemina Laboratories.
Diversification Opportunities for Genmab A/S and Gemina Laboratories
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genmab and Gemina is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Gemina Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemina Laboratories and Genmab A/S 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 Gemina Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemina Laboratories has no effect on the direction of Genmab A/S i.e., Genmab A/S and Gemina Laboratories go up and down completely randomly.
Pair Corralation between Genmab A/S and Gemina Laboratories
Assuming the 90 days horizon Genmab AS is expected to generate 0.45 times more return on investment than Gemina Laboratories. However, Genmab AS is 2.22 times less risky than Gemina Laboratories. It trades about -0.09 of its potential returns per unit of risk. Gemina Laboratories is currently generating about -0.15 per unit of risk. If you would invest 20,972 in Genmab AS on November 3, 2024 and sell it today you would lose (1,228) from holding Genmab AS or give up 5.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Genmab AS vs. Gemina Laboratories
Performance |
| Timeline |
| Genmab A/S |
| Gemina Laboratories |
Genmab A/S and Gemina Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab A/S and Gemina Laboratories
The main advantage of trading using opposite Genmab A/S and Gemina Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab A/S position performs unexpectedly, Gemina Laboratories 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 Gemina Laboratories will offset losses from the drop in Gemina Laboratories' long position.| Genmab A/S vs. Inhibikase Therapeutics | Genmab A/S vs. Purple Biotech | Genmab A/S vs. Synaptogenix | Genmab A/S vs. Legend Biotech Corp |
| Gemina Laboratories vs. Novo Nordisk AS | Gemina Laboratories vs. Genmab AS | Gemina Laboratories vs. Inhibikase Therapeutics | Gemina Laboratories vs. Purple 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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