Correlation Between Danske Invest and Genmab AS
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By analyzing existing cross correlation between Danske Invest Europa and Genmab AS, you can compare the effects of market volatilities on Danske Invest 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 Danske Invest with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and Genmab AS.
Diversification Opportunities for Danske Invest and Genmab AS
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Danske and Genmab is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest Europa and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Danske Invest 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 Danske Invest Europa 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 Danske Invest i.e., Danske Invest and Genmab AS go up and down completely randomly.
Pair Corralation between Danske Invest and Genmab AS
Assuming the 90 days trading horizon Danske Invest Europa is expected to generate 0.44 times more return on investment than Genmab AS. However, Danske Invest Europa is 2.26 times less risky than Genmab AS. It trades about 0.04 of its potential returns per unit of risk. Genmab AS is currently generating about 0.0 per unit of risk. If you would invest 11,495 in Danske Invest Europa on January 26, 2024 and sell it today you would earn a total of 1,015 from holding Danske Invest Europa or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 62.02% |
| Values | Daily Returns |
Danske Invest Europa vs. Genmab AS
Performance |
| Timeline |
| Danske Invest Europa |
| Genmab AS |
Danske Invest and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and Genmab AS
The main advantage of trading using opposite Danske Invest and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest 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.| Danske Invest vs. Novo Nordisk AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. DSV Panalpina AS | Danske Invest vs. AP Mller |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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