Correlation Between Argenx NV and Cencora
Can any of the company-specific risk be diversified away by investing in both Argenx NV and Cencora 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 Argenx NV and Cencora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between argenx NV ADR and Cencora, you can compare the effects of market volatilities on Argenx NV and Cencora 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 Argenx NV with a short position of Cencora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argenx NV and Cencora.
Diversification Opportunities for Argenx NV and Cencora
Very poor diversification
The 3 months correlation between Argenx and Cencora is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding argenx NV ADR and Cencora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cencora and Argenx NV 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 argenx NV ADR are associated (or correlated) with Cencora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cencora has no effect on the direction of Argenx NV i.e., Argenx NV and Cencora go up and down completely randomly.
Pair Corralation between Argenx NV and Cencora
Given the investment horizon of 90 days Argenx NV is expected to generate 1.61 times less return on investment than Cencora. In addition to that, Argenx NV is 1.03 times more volatile than Cencora. It trades about 0.09 of its total potential returns per unit of risk. Cencora is currently generating about 0.15 per unit of volatility. If you would invest 30,480 in Cencora on October 6, 2025 and sell it today you would earn a total of 3,407 from holding Cencora or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
argenx NV ADR vs. Cencora
Performance |
| Timeline |
| argenx NV ADR |
| Cencora |
Argenx NV and Cencora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argenx NV and Cencora
The main advantage of trading using opposite Argenx NV and Cencora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argenx NV position performs unexpectedly, Cencora 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 Cencora will offset losses from the drop in Cencora's long position.| Argenx NV vs. Becton Dickinson and | Argenx NV vs. Edwards Lifesciences Corp | Argenx NV vs. Alnylam Pharmaceuticals | Argenx NV vs. Veeva Systems Class |
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 Correlations module to find global opportunities by holding instruments from different markets.
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