Correlation Between SentinelOne and Genmab A/S

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

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

Diversification Opportunities for SentinelOne and Genmab A/S

-0.46

Correlation Coefficient

SentinelOne  Genmab A/S

Very good diversification

The 3 months correlation between SentinelOne and Genmab is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab A/S and SentinelOne 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 SentinelOne are associated (or correlated) with Genmab A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genmab A/S has no effect on the direction of SentinelOne i.e., SentinelOne and Genmab A/S go up and down completely randomly.

Pair Corralation between SentinelOne and Genmab A/S

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Genmab A/S. In addition to that, SentinelOne is 1.08 times more volatile than Genmab AS. It trades about -0.02 of its total potential returns per unit of risk. Genmab AS is currently generating about 0.02 per unit of volatility. If you would invest  22,051  in Genmab AS on May 3, 2025 and sell it today you would earn a total of  172.00  from holding Genmab AS or generate 0.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

SentinelOne  vs.  Genmab AS

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Genmab A/S

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genmab AS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Genmab A/S is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SentinelOne and Genmab A/S

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

The idea behind SentinelOne and Genmab AS 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.