Correlation Between Seluxit AS and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Seluxit AS 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 Seluxit AS and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seluxit AS and Genmab AS, you can compare the effects of market volatilities on Seluxit AS 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 Seluxit AS with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seluxit AS and Genmab AS.
Diversification Opportunities for Seluxit AS and Genmab AS
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seluxit and Genmab is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Seluxit AS and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Seluxit 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 Seluxit AS 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 Seluxit AS i.e., Seluxit AS and Genmab AS go up and down completely randomly.
Pair Corralation between Seluxit AS and Genmab AS
Assuming the 90 days trading horizon Seluxit AS is expected to generate 5.38 times more return on investment than Genmab AS. However, Seluxit AS is 5.38 times more volatile than Genmab AS. It trades about 0.05 of its potential returns per unit of risk. Genmab AS is currently generating about -0.1 per unit of risk. If you would invest 340.00 in Seluxit AS on January 24, 2024 and sell it today you would earn a total of 10.00 from holding Seluxit AS or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seluxit AS vs. Genmab AS
Performance |
| Timeline |
| Seluxit AS |
| Genmab AS |
Seluxit AS and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seluxit AS and Genmab AS
The main advantage of trading using opposite Seluxit AS and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seluxit AS 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.| Seluxit AS vs. Formuepleje Mix Medium | Seluxit AS vs. Jyske Bank AS | Seluxit AS vs. North Media AS | Seluxit AS vs. Nordinvestments AS |
| Genmab AS vs. Ambu AS | Genmab AS vs. DSV Panalpina AS | Genmab AS vs. Bavarian Nordic | Genmab AS vs. GN Store Nord |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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