Correlation Between NTG Nordic and Genmab AS
Can any of the company-specific risk be diversified away by investing in both NTG Nordic 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 NTG Nordic and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and Genmab AS, you can compare the effects of market volatilities on NTG Nordic 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 NTG Nordic with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Genmab AS.
Diversification Opportunities for NTG Nordic and Genmab AS
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NTG and Genmab is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and NTG Nordic 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 NTG Nordic Transport 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 NTG Nordic i.e., NTG Nordic and Genmab AS go up and down completely randomly.
Pair Corralation between NTG Nordic and Genmab AS
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the Genmab AS. But the stock apears to be less risky and, when comparing its historical volatility, NTG Nordic Transport is 1.48 times less risky than Genmab AS. The stock trades about -0.52 of its potential returns per unit of risk. The Genmab AS is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 146,350 in Genmab AS on September 18, 2024 and sell it today you would lose (3,600) from holding Genmab AS or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. Genmab AS
Performance |
| Timeline |
| NTG Nordic Transport |
| Genmab AS |
NTG Nordic and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Genmab AS
The main advantage of trading using opposite NTG Nordic and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic 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.| NTG Nordic vs. Genmab AS | NTG Nordic vs. Danske Bank AS | NTG Nordic vs. Ambu AS | NTG Nordic vs. Bavarian Nordic |
| Genmab AS vs. Ambu AS | Genmab AS vs. DSV Panalpina AS | Genmab AS vs. Bavarian Nordic | Genmab AS vs. GN Store Nord |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| 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 | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |