Correlation Between Genmab AS and Uber Technologies

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Can any of the company-specific risk be diversified away by investing in both Genmab AS and Uber Technologies 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 Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genmab AS and Uber Technologies, you can compare the effects of market volatilities on Genmab AS and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genmab AS and Uber Technologies.

Diversification Opportunities for Genmab AS and Uber Technologies

  Correlation Coefficient

Significant diversification

The 3 months correlation between Genmab and Uber Technologies is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Genmab AS and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Genmab AS i.e., Genmab AS and Uber Technologies go up and down completely randomly.

Pair Corralation between Genmab AS and Uber Technologies

Assuming the 90 days horizon Genmab AS is expected to generate 0.77 times more return on investment than Uber Technologies. However, Genmab AS is 1.3 times less risky than Uber Technologies. It trades about 0.04 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.01 per unit of risk. If you would invest  39,208  in Genmab AS on September 4, 2022 and sell it today you would earn a total of  6,905  from holding Genmab AS or generate 17.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

Genmab AS  vs.  Uber Technologies

 Performance (%) 
Genmab AS 
Genmab Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Genmab AS are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Genmab AS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Genmab Price Channel

Uber Technologies 
Uber Technologies Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Uber Technologies is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Uber Technologies Price Channel

Genmab AS and Uber Technologies Volatility Contrast

   Predicted Return Density   

Pair Trading with Genmab AS and Uber Technologies

The main advantage of trading using opposite Genmab AS and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genmab AS position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.
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The idea behind Genmab AS and Uber Technologies 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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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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