Correlation Between Palantir Technologies and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Palantir Technologies 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 Palantir Technologies and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palantir Technologies Class and Genmab AS, you can compare the effects of market volatilities on Palantir Technologies 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 Palantir Technologies with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Genmab AS.
Diversification Opportunities for Palantir Technologies and Genmab AS
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Palantir and Genmab is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Palantir Technologies 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 Palantir Technologies Class 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 Palantir Technologies i.e., Palantir Technologies and Genmab AS go up and down completely randomly.
Pair Corralation between Palantir Technologies and Genmab AS
Given the investment horizon of 90 days Palantir Technologies Class is expected to generate 1.49 times more return on investment than Genmab AS. However, Palantir Technologies is 1.49 times more volatile than Genmab AS. It trades about 0.13 of its potential returns per unit of risk. Genmab AS is currently generating about -0.05 per unit of risk. If you would invest 1,579 in Palantir Technologies Class on September 3, 2024 and sell it today you would earn a total of 5,060 from holding Palantir Technologies Class or generate 320.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palantir Technologies Class vs. Genmab AS
Performance |
| Timeline |
| Palantir Technologies |
| Genmab AS |
Palantir Technologies and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palantir Technologies and Genmab AS
The main advantage of trading using opposite Palantir Technologies and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies 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.| Palantir Technologies vs. Palo Alto Networks | Palantir Technologies vs. Adobe Systems Incorporated | Palantir Technologies vs. Crowdstrike Holdings | Palantir Technologies vs. Block Inc |
| Genmab AS vs. Inhibikase Therapeutics | Genmab AS vs. Purple Biotech | Genmab AS vs. Synaptogenix | Genmab AS vs. Legend Biotech Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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