Correlation Between Genmab AS and CSL

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Can any of the company-specific risk be diversified away by investing in both Genmab AS and CSL 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 Genmab AS and CSL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and CSL, you can compare the effects of market volatilities on Genmab AS and CSL 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 Genmab AS with a short position of CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and CSL.

Diversification Opportunities for Genmab AS and CSL

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Genmab and CSL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Genmab AS 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 Genmab AS are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Genmab AS i.e., Genmab AS and CSL go up and down completely randomly.

Pair Corralation between Genmab AS and CSL

If you would invest (100.00) in Genmab AS on January 25, 2024 and sell it today you would earn a total of  100.00  from holding Genmab AS or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Genmab AS  vs.  CSL

 Performance 
       Timeline  
Genmab AS 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Genmab AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Genmab AS is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
CSL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CSL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, CSL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Genmab AS and CSL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genmab AS and CSL

The main advantage of trading using opposite Genmab AS and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.
The idea behind Genmab AS and CSL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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