Correlation Between Genmab AS and Novo Nordisk
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Novo Nordisk 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 Novo Nordisk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Novo Nordisk AS, you can compare the effects of market volatilities on Genmab AS and Novo Nordisk 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 Novo Nordisk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Novo Nordisk.
Diversification Opportunities for Genmab AS and Novo Nordisk
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genmab and Novo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Novo Nordisk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Nordisk AS 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 Novo Nordisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Nordisk AS has no effect on the direction of Genmab AS i.e., Genmab AS and Novo Nordisk go up and down completely randomly.
Pair Corralation between Genmab AS and Novo Nordisk
If you would invest 5,412 in Novo Nordisk AS on January 18, 2024 and sell it today you would earn a total of 6,933 from holding Novo Nordisk AS or generate 128.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Genmab AS vs. Novo Nordisk AS
Performance |
| Timeline |
| Genmab AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Novo Nordisk AS |
Genmab AS and Novo Nordisk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Novo Nordisk
The main advantage of trading using opposite Genmab AS and Novo Nordisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Novo Nordisk 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 Novo Nordisk will offset losses from the drop in Novo Nordisk's long position.| Genmab AS vs. Nok Airlines Public | Genmab AS vs. Inflection Point Acquisition | Genmab AS vs. Highway Holdings Limited | Genmab AS vs. US GoldMining Common |
| Novo Nordisk vs. PetIQ Inc | Novo Nordisk vs. Emergent Biosolutions | Novo Nordisk vs. Neurocrine Biosciences | Novo Nordisk vs. Haleon plc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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