Correlation Between Bavarian Nordic and Ascelia Pharma
Can any of the company-specific risk be diversified away by investing in both Bavarian Nordic and Ascelia Pharma 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 Bavarian Nordic and Ascelia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bavarian Nordic and Ascelia Pharma AB, you can compare the effects of market volatilities on Bavarian Nordic and Ascelia Pharma 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 Bavarian Nordic with a short position of Ascelia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bavarian Nordic and Ascelia Pharma.
Diversification Opportunities for Bavarian Nordic and Ascelia Pharma
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bavarian and Ascelia is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bavarian Nordic and Ascelia Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascelia Pharma AB and Bavarian Nordic 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 Bavarian Nordic are associated (or correlated) with Ascelia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascelia Pharma AB has no effect on the direction of Bavarian Nordic i.e., Bavarian Nordic and Ascelia Pharma go up and down completely randomly.
Pair Corralation between Bavarian Nordic and Ascelia Pharma
Assuming the 90 days trading horizon Bavarian Nordic is expected to generate 988.0 times less return on investment than Ascelia Pharma. In addition to that, Bavarian Nordic is 1.3 times more volatile than Ascelia Pharma AB. It trades about 0.0 of its total potential returns per unit of risk. Ascelia Pharma AB is currently generating about 0.35 per unit of volatility. 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 |
Bavarian Nordic vs. Ascelia Pharma AB
Performance |
| Timeline |
| Bavarian Nordic |
| Ascelia Pharma AB |
Bavarian Nordic and Ascelia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bavarian Nordic and Ascelia Pharma
The main advantage of trading using opposite Bavarian Nordic and Ascelia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bavarian Nordic position performs unexpectedly, Ascelia Pharma 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 Ascelia Pharma will offset losses from the drop in Ascelia Pharma's long position.| Bavarian Nordic vs. Dataproces Group AS | Bavarian Nordic vs. cBrain AS | Bavarian Nordic vs. Nilfisk Holding AS | Bavarian Nordic vs. Danish Aerospace |
| Ascelia Pharma vs. Bavarian Nordic | Ascelia Pharma vs. BioPorto | Ascelia Pharma vs. Zaptec AS | Ascelia Pharma vs. cBrain 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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