Correlation Between SEBinvest Danske and Genmab AS
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By analyzing existing cross correlation between SEBinvest Danske and Genmab AS, you can compare the effects of market volatilities on SEBinvest Danske 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 SEBinvest Danske with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEBinvest Danske and Genmab AS.
Diversification Opportunities for SEBinvest Danske and Genmab AS
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SEBinvest and Genmab is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SEBinvest - Danske and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and SEBinvest Danske 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 SEBinvest Danske 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 SEBinvest Danske i.e., SEBinvest Danske and Genmab AS go up and down completely randomly.
Pair Corralation between SEBinvest Danske and Genmab AS
Assuming the 90 days trading horizon SEBinvest Danske is expected to generate 1.73 times less return on investment than Genmab AS. But when comparing it to its historical volatility, SEBinvest Danske is 3.82 times less risky than Genmab AS. It trades about 0.22 of its potential returns per unit of risk. Genmab AS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 198,850 in Genmab AS on December 29, 2023 and sell it today you would earn a total of 9,550 from holding Genmab AS or generate 4.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
SEBinvest - Danske vs. Genmab AS
Performance |
Timeline |
SEBinvest - Danske |
Genmab AS |
SEBinvest Danske and Genmab AS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SEBinvest Danske and Genmab AS
The main advantage of trading using opposite SEBinvest Danske and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEBinvest Danske 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.SEBinvest Danske vs. Novo Nordisk AS | SEBinvest Danske vs. Nordea Bank Abp | SEBinvest Danske vs. DSV Panalpina AS | SEBinvest Danske vs. AP Mller |
Genmab AS vs. Scandinavian Tobacco Group | Genmab AS vs. Nordea Bank Abp | Genmab AS vs. FOM Technologies AS | Genmab AS vs. Nordinvestments AS |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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