Correlation Between Genmab AS and Incyte
Can any of the company-specific risk be diversified away by investing in both Genmab AS and Incyte 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 Incyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Incyte, you can compare the effects of market volatilities on Genmab AS and Incyte 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 Incyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Incyte.
Diversification Opportunities for Genmab AS and Incyte
Modest diversification
The 3 months correlation between Genmab and Incyte is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Incyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incyte 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 Incyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incyte has no effect on the direction of Genmab AS i.e., Genmab AS and Incyte go up and down completely randomly.
Pair Corralation between Genmab AS and Incyte
Given the investment horizon of 90 days Genmab AS is expected to under-perform the Incyte. In addition to that, Genmab AS is 1.0 times more volatile than Incyte. It trades about -0.15 of its total potential returns per unit of risk. Incyte is currently generating about 0.52 per unit of volatility. If you would invest 8,473 in Incyte on August 14, 2025 and sell it today you would earn a total of 2,343 from holding Incyte or generate 27.65% 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. Incyte
Performance |
| Timeline |
| Genmab AS |
| Incyte |
Genmab AS and Incyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genmab AS and Incyte
The main advantage of trading using opposite Genmab AS and Incyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Incyte 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 Incyte will offset losses from the drop in Incyte's long position.| Genmab AS vs. Incyte | Genmab AS vs. United Therapeutics | Genmab AS vs. Royalty Pharma Plc | Genmab AS vs. Tenet Healthcare |
| Incyte vs. United Therapeutics | Incyte vs. Genmab AS | Incyte vs. Royalty Pharma Plc | Incyte vs. Quest Diagnostics Incorporated |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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