Correlation Between SPDR Bloomberg and Genmab AS
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg 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 SPDR Bloomberg and Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg High and Genmab AS, you can compare the effects of market volatilities on SPDR Bloomberg 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 SPDR Bloomberg with a short position of Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and Genmab AS.
Diversification Opportunities for SPDR Bloomberg and Genmab AS
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and Genmab is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg High and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab AS and SPDR Bloomberg 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 SPDR Bloomberg High 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 SPDR Bloomberg i.e., SPDR Bloomberg and Genmab AS go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and Genmab AS
Considering the 90-day investment horizon SPDR Bloomberg High is expected to generate 0.32 times more return on investment than Genmab AS. However, SPDR Bloomberg High is 3.09 times less risky than Genmab AS. It trades about -0.07 of its potential returns per unit of risk. Genmab AS is currently generating about -0.3 per unit of risk. If you would invest 9,433 in SPDR Bloomberg High on January 26, 2024 and sell it today you would lose (65.00) from holding SPDR Bloomberg High or give up 0.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 82.61% |
Values | Daily Returns |
SPDR Bloomberg High vs. Genmab AS
Performance |
Timeline |
SPDR Bloomberg High |
Genmab AS |
SPDR Bloomberg and Genmab AS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR Bloomberg and Genmab AS
The main advantage of trading using opposite SPDR Bloomberg and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg 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.SPDR Bloomberg vs. iShares iBoxx Investment | SPDR Bloomberg vs. iShares TIPS Bond | SPDR Bloomberg vs. iShares 20 Year | SPDR Bloomberg vs. iShares JP Morgan |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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