Correlation Between Multi Manager and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Multi Manager 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 Multi Manager and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager Invest and Genmab AS, you can compare the effects of market volatilities on Multi Manager 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 Multi Manager with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and Genmab AS.
Diversification Opportunities for Multi Manager and Genmab AS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Multi and Genmab is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Invest and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Multi Manager 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 Multi Manager Invest 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 Multi Manager i.e., Multi Manager and Genmab AS go up and down completely randomly.
Pair Corralation between Multi Manager and Genmab AS
Assuming the 90 days trading horizon Multi Manager Invest is expected to generate 0.58 times more return on investment than Genmab AS. However, Multi Manager Invest is 1.72 times less risky than Genmab AS. It trades about 0.02 of its potential returns per unit of risk. Genmab AS is currently generating about -0.01 per unit of risk. If you would invest 15,413 in Multi Manager Invest on January 19, 2024 and sell it today you would earn a total of 987.00 from holding Multi Manager Invest or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Manager Invest vs. Genmab AS
Performance |
| Timeline |
| Multi Manager Invest |
| Genmab AS |
Multi Manager and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and Genmab AS
The main advantage of trading using opposite Multi Manager and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager 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.| Multi Manager vs. Novo Nordisk AS | Multi Manager vs. Nordea Bank Abp | Multi Manager vs. DSV Panalpina AS | Multi Manager vs. AP Mller |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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