Correlation Between Polydex Pharmaceuticals and Genmab AS

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

Diversification Opportunities for Polydex Pharmaceuticals and Genmab AS

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Polydex and Genmab is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Polydex Pharmaceuticals and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Polydex Pharmaceuticals 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 Polydex Pharmaceuticals 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 Polydex Pharmaceuticals i.e., Polydex Pharmaceuticals and Genmab AS go up and down completely randomly.

Pair Corralation between Polydex Pharmaceuticals and Genmab AS

If you would invest (100.00) in Genmab AS on January 20, 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

Polydex Pharmaceuticals  vs.  Genmab AS

 Performance 
       Timeline  
Polydex Pharmaceuticals 

Risk-Adjusted Performance

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Over the last 90 days Polydex Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Polydex Pharmaceuticals is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
Genmab AS 

Risk-Adjusted Performance

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Weak
 
Strong
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.

Polydex Pharmaceuticals and Genmab AS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Polydex Pharmaceuticals and Genmab AS

The main advantage of trading using opposite Polydex Pharmaceuticals and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polydex Pharmaceuticals 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.
The idea behind Polydex Pharmaceuticals and Genmab AS 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.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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