Novo Nordisk (Denmark) Market Value
| NOVO-B Stock | DKK 530.20 5.20 0.99% |
| Symbol | Novo |
Novo Nordisk 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Novo Nordisk's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Novo Nordisk.
| 12/17/2024 |
| 03/17/2025 |
If you would invest 0.00 in Novo Nordisk on December 17, 2024 and sell it all today you would earn a total of 0.00 from holding Novo Nordisk AS or generate 0.0% return on investment in Novo Nordisk over 90 days. Novo Nordisk is related to or competes with Vestas Wind, Danske Bank, Bavarian Nordic, DSV Panalpina, and Orsted AS. Novo Nordisk AS, a healthcare company, engages in the research, development, manufacture, and marketing of pharmaceutica... More
Novo Nordisk Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Novo Nordisk's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Novo Nordisk AS upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.11) | |||
| Maximum Drawdown | 23.81 | |||
| Value At Risk | (4.32) | |||
| Potential Upside | 4.54 |
Novo Nordisk Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Novo Nordisk's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Novo Nordisk's standard deviation. In reality, there are many statistical measures that can use Novo Nordisk historical prices to predict the future Novo Nordisk's volatility.| Risk Adjusted Performance | (0.11) | |||
| Jensen Alpha | (0.45) | |||
| Total Risk Alpha | (0.05) | |||
| Treynor Ratio | (0.73) |
Novo Nordisk AS Backtested Returns
Novo Nordisk AS has Sharpe Ratio of -0.14, which conveys that the firm had a -0.14 % return per unit of risk over the last 3 months. Novo Nordisk exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Novo Nordisk's Standard Deviation of 3.78, risk adjusted performance of (0.11), and Mean Deviation of 2.5 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 0.73, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Novo Nordisk's returns are expected to increase less than the market. However, during the bear market, the loss of holding Novo Nordisk is expected to be smaller as well. At this point, Novo Nordisk AS has a negative expected return of -0.54%. Please make sure to verify Novo Nordisk's kurtosis, daily balance of power, and the relationship between the skewness and accumulation distribution , to decide if Novo Nordisk AS performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.15 |
Insignificant reverse predictability
Novo Nordisk AS has insignificant reverse predictability. Overlapping area represents the amount of predictability between Novo Nordisk time series from 17th of December 2024 to 31st of January 2025 and 31st of January 2025 to 17th of March 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Novo Nordisk AS price movement. The serial correlation of -0.15 indicates that less than 15.0% of current Novo Nordisk price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.15 | |
| Spearman Rank Test | -0.08 | |
| Residual Average | 0.0 | |
| Price Variance | 1271.75 |
Novo Nordisk AS lagged returns against current returns
Autocorrelation, which is Novo Nordisk stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Novo Nordisk's stock expected returns. We can calculate the autocorrelation of Novo Nordisk returns to help us make a trade decision. For example, suppose you find that Novo Nordisk has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Novo Nordisk regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Novo Nordisk stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Novo Nordisk stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Novo Nordisk stock over time.
Current vs Lagged Prices |
| Timeline |
Novo Nordisk Lagged Returns
When evaluating Novo Nordisk's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Novo Nordisk stock have on its future price. Novo Nordisk autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Novo Nordisk autocorrelation shows the relationship between Novo Nordisk stock current value and its past values and can show if there is a momentum factor associated with investing in Novo Nordisk AS.
Regressed Prices |
| Timeline |
Pair Trading with Novo Nordisk
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Novo Nordisk position performs unexpectedly, the other equity 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 Novo Nordisk will appreciate offsetting losses from the drop in the long position's value.Moving against Novo Stock
The ability to find closely correlated positions to Novo Nordisk could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Novo Nordisk when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Novo Nordisk - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Novo Nordisk AS to buy it.
The correlation of Novo Nordisk is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Novo Nordisk moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Novo Nordisk AS moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Novo Nordisk can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Information and Resources on Investing in Novo Stock
When determining whether Novo Nordisk AS offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Novo Nordisk's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Novo Nordisk As Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Novo Nordisk As Stock:Check out Novo Nordisk Correlation, Novo Nordisk Volatility and Novo Nordisk Alpha and Beta module to complement your research on Novo Nordisk. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Novo Nordisk technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.