Correlation Between Genmab AS and Trifork Holding

Can any of the company-specific risk be diversified away by investing in both Genmab AS and Trifork Holding 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 Genmab AS and Trifork Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Genmab AS and Trifork Holding AG, you can compare the effects of market volatilities on Genmab AS and Trifork Holding 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 Genmab AS with a short position of Trifork Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Trifork Holding.

Diversification Opportunities for Genmab AS and Trifork Holding

0.24

Correlation Coefficient

Genmab AS  Trifork Holding

Modest diversification

The 3 months correlation between Genmab and Trifork is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Trifork Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trifork Holding AG and Genmab 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 Genmab AS are associated (or correlated) with Trifork Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trifork Holding AG has no effect on the direction of Genmab AS i.e., Genmab AS and Trifork Holding go up and down completely randomly.

Pair Corralation between Genmab AS and Trifork Holding

Assuming the 90 days trading horizon Genmab AS is expected to generate 1.08 times more return on investment than Trifork Holding. However, Genmab AS is 1.08 times more volatile than Trifork Holding AG. It trades about 0.06 of its potential returns per unit of risk. Trifork Holding AG is currently generating about 0.06 per unit of risk. If you would invest  137,750  in Genmab AS on March 19, 2025 and sell it today you would earn a total of  9,700  from holding Genmab AS or generate 7.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Genmab AS  vs.  Trifork Holding AG

Genmab AS

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Genmab AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Genmab AS may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Trifork Holding AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trifork Holding AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Trifork Holding may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Genmab AS and Trifork Holding

The main advantage of trading using opposite Genmab AS and Trifork Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Trifork Holding 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 Trifork Holding will offset losses from the drop in Trifork Holding's long position.

The idea behind Genmab AS and Trifork Holding AG 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.