Correlation Between Sartorius Stedim and Genmab A/S

Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim 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 Sartorius Stedim 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 Sartorius Stedim Biotech and Genmab AS, you can compare the effects of market volatilities on Sartorius Stedim 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 Sartorius Stedim with a short position of Genmab A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Genmab A/S.

Diversification Opportunities for Sartorius Stedim and Genmab A/S

-0.35

Correlation Coefficient

Sartorius Stedim  Genmab A/S

Very good diversification

The 3 months correlation between Sartorius and Genmab is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab A/S and Sartorius Stedim 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 Sartorius Stedim Biotech 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 Sartorius Stedim i.e., Sartorius Stedim and Genmab A/S go up and down completely randomly.

Pair Corralation between Sartorius Stedim and Genmab A/S

Assuming the 90 days horizon Sartorius Stedim Biotech is expected to under-perform the Genmab A/S. In addition to that, Sartorius Stedim is 1.26 times more volatile than Genmab AS. It trades about -0.11 of its total potential returns per unit of risk. Genmab AS is currently generating about 0.11 per unit of volatility. If you would invest  18,880  in Genmab AS on May 14, 2025 and sell it today you would earn a total of  2,751  from holding Genmab AS or generate 14.57% return on investment over 90 days.

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

Sartorius Stedim Biotech  vs.  Genmab AS

Sartorius Stedim Biotech

Risk-Adjusted Performance

Weakest

Over the last 90 days Sartorius Stedim Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Genmab A/S

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Genmab AS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genmab A/S reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sartorius Stedim and Genmab A/S

The main advantage of trading using opposite Sartorius Stedim and Genmab A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim 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 Sartorius Stedim Biotech 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.