Correlation Between Genmab AS and Therapeutic Solutions
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Therapeutic Solutions 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 Therapeutic Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Therapeutic Solutions International, you can compare the effects of market volatilities on Genmab AS and Therapeutic Solutions 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 Therapeutic Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Therapeutic Solutions.
Diversification Opportunities for Genmab AS and Therapeutic Solutions
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genmab and Therapeutic is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Therapeutic Solutions Internat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Therapeutic Solutions 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 Therapeutic Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Therapeutic Solutions has no effect on the direction of Genmab AS i.e., Genmab AS and Therapeutic Solutions go up and down completely randomly.
Pair Corralation between Genmab AS and Therapeutic Solutions
Assuming the 90 days horizon Genmab AS is expected to under-perform the Therapeutic Solutions. But the pink sheet apears to be less risky and, when comparing its historical volatility, Genmab AS is 4.12 times less risky than Therapeutic Solutions. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Therapeutic Solutions International is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.14 in Therapeutic Solutions International on September 12, 2024 and sell it today you would lose (0.09) from holding Therapeutic Solutions International or give up 64.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genmab AS vs. Therapeutic Solutions Internat
Performance |
| Timeline |
| Genmab AS |
| Therapeutic Solutions |
Genmab AS and Therapeutic Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Therapeutic Solutions
The main advantage of trading using opposite Genmab AS and Therapeutic Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Therapeutic Solutions 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 Therapeutic Solutions will offset losses from the drop in Therapeutic Solutions' long position.| Genmab AS vs. Inhibikase Therapeutics | Genmab AS vs. Purple Biotech | Genmab AS vs. Synaptogenix | Genmab AS vs. Legend Biotech Corp |
| Therapeutic Solutions vs. Ensysce Biosciences | Therapeutic Solutions vs. Aptorum Group Ltd | Therapeutic Solutions vs. Regen BioPharma | Therapeutic Solutions vs. Alpha Cognition |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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