Correlation Between Zura Bio and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Zura Bio 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 Zura Bio and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and Genmab AS, you can compare the effects of market volatilities on Zura Bio 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 Zura Bio with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Genmab AS.
Diversification Opportunities for Zura Bio and Genmab AS
Good diversification
The 3 months correlation between Zura and Genmab is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Zura Bio 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 Zura Bio Limited 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 Zura Bio i.e., Zura Bio and Genmab AS go up and down completely randomly.
Pair Corralation between Zura Bio and Genmab AS
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the Genmab AS. In addition to that, Zura Bio is 3.23 times more volatile than Genmab AS. It trades about -0.34 of its total potential returns per unit of risk. Genmab AS is currently generating about -0.23 per unit of volatility. If you would invest 2,273 in Genmab AS on August 24, 2024 and sell it today you would lose (202.00) from holding Genmab AS or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zura Bio Limited vs. Genmab AS
Performance |
| Timeline |
| Zura Bio Limited |
| Genmab AS |
Zura Bio and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and Genmab AS
The main advantage of trading using opposite Zura Bio and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio 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.| Zura Bio vs. Kaltura | Zura Bio vs. Mesa Air Group | Zura Bio vs. Volaris | Zura Bio vs. Ryanair Holdings PLC |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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