Correlation Between 23Andme Holding and Genmab AS
Can any of the company-specific risk be diversified away by investing in both 23Andme Holding and Genmab AS 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 23Andme Holding and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 23Andme Holding Co and Genmab AS, you can compare the effects of market volatilities on 23Andme Holding and Genmab AS 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 23Andme Holding with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 23Andme Holding and Genmab AS.
Diversification Opportunities for 23Andme Holding and Genmab AS
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 23Andme and Genmab is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding 23Andme Holding Co and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and 23Andme Holding 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 23Andme Holding Co are associated (or correlated) with Genmab AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genmab AS has no effect on the direction of 23Andme Holding i.e., 23Andme Holding and Genmab AS go up and down completely randomly.
Pair Corralation between 23Andme Holding and Genmab AS
Allowing for the 90-day total investment horizon 23Andme Holding Co is expected to under-perform the Genmab AS. In addition to that, 23Andme Holding is 4.38 times more volatile than Genmab AS. It trades about -0.22 of its total potential returns per unit of risk. Genmab AS is currently generating about -0.21 per unit of volatility. If you would invest 2,312 in Genmab AS on August 30, 2024 and sell it today you would lose (196.00) from holding Genmab AS or give up 8.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
23Andme Holding Co vs. Genmab AS
Performance |
| Timeline |
| 23Andme Holding |
| Genmab AS |
23Andme Holding and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 23Andme Holding and Genmab AS
The main advantage of trading using opposite 23Andme Holding and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 23Andme Holding position performs unexpectedly, Genmab AS 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 Genmab AS will offset losses from the drop in Genmab AS's long position.| 23Andme Holding vs. IDEXX Laboratories | 23Andme Holding vs. Twist Bioscience Corp | 23Andme Holding vs. Guardant Health | 23Andme Holding vs. Agilent Technologies |
| Genmab AS vs. Ascendis Pharma AS | Genmab AS vs. Apellis Pharmaceuticals | Genmab AS vs. BeiGene | Genmab AS vs. Akero Therapeutics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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