Correlation Between Synaptogenix and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Synaptogenix 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 Synaptogenix and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synaptogenix and Genmab AS, you can compare the effects of market volatilities on Synaptogenix 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 Synaptogenix with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synaptogenix and Genmab AS.
Diversification Opportunities for Synaptogenix and Genmab AS
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Synaptogenix and Genmab is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Synaptogenix and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Synaptogenix 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 Synaptogenix 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 Synaptogenix i.e., Synaptogenix and Genmab AS go up and down completely randomly.
Pair Corralation between Synaptogenix and Genmab AS
Given the investment horizon of 90 days Synaptogenix is expected to under-perform the Genmab AS. In addition to that, Synaptogenix is 2.71 times more volatile than Genmab AS. It trades about -0.07 of its total potential returns per unit of risk. Genmab AS is currently generating about -0.05 per unit of volatility. If you would invest 46,290 in Genmab AS on September 3, 2024 and sell it today you would lose (25,040) from holding Genmab AS or give up 54.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synaptogenix vs. Genmab AS
Performance |
| Timeline |
| Synaptogenix |
| Genmab AS |
Synaptogenix and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synaptogenix and Genmab AS
The main advantage of trading using opposite Synaptogenix and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synaptogenix 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.| Synaptogenix vs. Annovis Bio | Synaptogenix vs. Cyclo Therapeutics | Synaptogenix vs. Reviva Pharmaceuticals Holdings | Synaptogenix vs. INmune Bio |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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