Correlation Between Bactiquant and Bavarian Nordic
Can any of the company-specific risk be diversified away by investing in both Bactiquant 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 Bactiquant and Bavarian Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bactiquant AS and Bavarian Nordic, you can compare the effects of market volatilities on Bactiquant 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 Bactiquant with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bactiquant and Bavarian Nordic.
Diversification Opportunities for Bactiquant and Bavarian Nordic
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bactiquant and Bavarian is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bactiquant AS and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic and Bactiquant 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 Bactiquant AS 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 Bactiquant i.e., Bactiquant and Bavarian Nordic go up and down completely randomly.
Pair Corralation between Bactiquant and Bavarian Nordic
Assuming the 90 days trading horizon Bactiquant AS is expected to under-perform the Bavarian Nordic. In addition to that, Bactiquant is 1.44 times more volatile than Bavarian Nordic. It trades about -0.3 of its total potential returns per unit of risk. Bavarian Nordic is currently generating about 0.11 per unit of volatility. If you would invest 18,530 in Bavarian Nordic on September 18, 2024 and sell it today you would earn a total of 775.00 from holding Bavarian Nordic or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bactiquant AS vs. Bavarian Nordic
Performance |
| Timeline |
| Bactiquant AS |
| Bavarian Nordic |
Bactiquant and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bactiquant and Bavarian Nordic
The main advantage of trading using opposite Bactiquant and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bactiquant 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.| Bactiquant vs. Bavarian Nordic | Bactiquant vs. Investeringsselskabet Luxor AS | Bactiquant vs. cBrain AS | Bactiquant vs. Fast Ejendom |
| Bavarian Nordic vs. Ambu AS | Bavarian Nordic vs. Danske Bank AS | Bavarian Nordic vs. Genmab AS | Bavarian Nordic vs. DSV Panalpina AS |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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