Correlation Between Ascelia Pharma and Bavarian Nordic
Can any of the company-specific risk be diversified away by investing in both Ascelia Pharma and Bavarian Nordic 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 Ascelia Pharma and Bavarian Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascelia Pharma AB and Bavarian Nordic, you can compare the effects of market volatilities on Ascelia Pharma and Bavarian Nordic 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 Ascelia Pharma with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascelia Pharma and Bavarian Nordic.
Diversification Opportunities for Ascelia Pharma and Bavarian Nordic
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ascelia and Bavarian is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ascelia Pharma AB and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic and Ascelia Pharma 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 Ascelia Pharma AB are associated (or correlated) with Bavarian Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bavarian Nordic has no effect on the direction of Ascelia Pharma i.e., Ascelia Pharma and Bavarian Nordic go up and down completely randomly.
Pair Corralation between Ascelia Pharma and Bavarian Nordic
Assuming the 90 days trading horizon Ascelia Pharma AB is expected to generate 0.77 times more return on investment than Bavarian Nordic. However, Ascelia Pharma AB is 1.3 times less risky than Bavarian Nordic. It trades about 0.35 of its potential returns per unit of risk. Bavarian Nordic is currently generating about 0.0 per unit of risk. If you would invest 255.00 in Ascelia Pharma AB on September 13, 2024 and sell it today you would earn a total of 78.00 from holding Ascelia Pharma AB or generate 30.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascelia Pharma AB vs. Bavarian Nordic
Performance |
| Timeline |
| Ascelia Pharma AB |
| Bavarian Nordic |
Ascelia Pharma and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascelia Pharma and Bavarian Nordic
The main advantage of trading using opposite Ascelia Pharma and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascelia Pharma position performs unexpectedly, Bavarian Nordic 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 Bavarian Nordic will offset losses from the drop in Bavarian Nordic's long position.| Ascelia Pharma vs. Bavarian Nordic | Ascelia Pharma vs. BioPorto | Ascelia Pharma vs. Zaptec AS | Ascelia Pharma vs. cBrain AS |
| Bavarian Nordic vs. Dataproces Group AS | Bavarian Nordic vs. cBrain AS | Bavarian Nordic vs. Nilfisk Holding AS | Bavarian Nordic vs. Danish Aerospace |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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