Correlation Between Seagen and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Seagen 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 Seagen and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seagen Inc and Genmab AS, you can compare the effects of market volatilities on Seagen 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 Seagen with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seagen and Genmab AS.
Diversification Opportunities for Seagen and Genmab AS
Poor diversification
The 3 months correlation between Seagen and Genmab is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Seagen Inc and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Seagen 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 Seagen Inc 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 Seagen i.e., Seagen and Genmab AS go up and down completely randomly.
Pair Corralation between Seagen and Genmab AS
If you would invest 19,623 in Seagen Inc on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Seagen Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Seagen Inc vs. Genmab AS
Performance |
| Timeline |
| Seagen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genmab AS |
Seagen and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seagen and Genmab AS
The main advantage of trading using opposite Seagen and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seagen 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.| Seagen vs. Biomarin Pharmaceutical | Seagen vs. Alnylam Pharmaceuticals | Seagen vs. Exelixis | Seagen vs. Halozyme Therapeutics |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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