Correlation Between Sydinvest Konservativ and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Sydinvest Konservativ 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 Sydinvest Konservativ and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydinvest Konservativ and Genmab AS, you can compare the effects of market volatilities on Sydinvest Konservativ 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 Sydinvest Konservativ with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydinvest Konservativ and Genmab AS.
Diversification Opportunities for Sydinvest Konservativ and Genmab AS
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sydinvest and Genmab is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sydinvest Konservativ and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and Sydinvest Konservativ 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 Sydinvest Konservativ 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 Sydinvest Konservativ i.e., Sydinvest Konservativ and Genmab AS go up and down completely randomly.
Pair Corralation between Sydinvest Konservativ and Genmab AS
Assuming the 90 days trading horizon Sydinvest Konservativ is expected to generate 0.11 times more return on investment than Genmab AS. However, Sydinvest Konservativ is 9.49 times less risky than Genmab AS. It trades about -0.09 of its potential returns per unit of risk. Genmab AS is currently generating about -0.02 per unit of risk. If you would invest 9,976 in Sydinvest Konservativ on January 20, 2024 and sell it today you would lose (28.00) from holding Sydinvest Konservativ or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Sydinvest Konservativ vs. Genmab AS
Performance |
| Timeline |
| Sydinvest Konservativ |
| Genmab AS |
Sydinvest Konservativ and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydinvest Konservativ and Genmab AS
The main advantage of trading using opposite Sydinvest Konservativ and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydinvest Konservativ 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.| Sydinvest Konservativ vs. Novo Nordisk AS | Sydinvest Konservativ vs. Nordea Bank Abp | Sydinvest Konservativ vs. DSV Panalpina AS | Sydinvest Konservativ 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |