Correlation Between Bavarian Nordic and Corline Biomedical
Can any of the company-specific risk be diversified away by investing in both Bavarian Nordic and Corline Biomedical 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 Corline Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bavarian Nordic and Corline Biomedical AB, you can compare the effects of market volatilities on Bavarian Nordic and Corline Biomedical 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 Corline Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bavarian Nordic and Corline Biomedical.
Diversification Opportunities for Bavarian Nordic and Corline Biomedical
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bavarian and Corline is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bavarian Nordic and Corline Biomedical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corline Biomedical 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 Corline Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corline Biomedical has no effect on the direction of Bavarian Nordic i.e., Bavarian Nordic and Corline Biomedical go up and down completely randomly.
Pair Corralation between Bavarian Nordic and Corline Biomedical
Assuming the 90 days trading horizon Bavarian Nordic is expected to generate 1.87 times less return on investment than Corline Biomedical. But when comparing it to its historical volatility, Bavarian Nordic is 1.16 times less risky than Corline Biomedical. It trades about 0.01 of its potential returns per unit of risk. Corline Biomedical AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 908.00 in Corline Biomedical AB on December 6, 2024 and sell it today you would earn a total of 24.00 from holding Corline Biomedical AB or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Bavarian Nordic vs. Corline Biomedical AB
Performance |
| Timeline |
| Bavarian Nordic |
| Corline Biomedical |
Bavarian Nordic and Corline Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bavarian Nordic and Corline Biomedical
The main advantage of trading using opposite Bavarian Nordic and Corline Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bavarian Nordic position performs unexpectedly, Corline Biomedical 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 Corline Biomedical will offset losses from the drop in Corline Biomedical's long position.| Bavarian Nordic vs. Ambu AS | Bavarian Nordic vs. Danske Bank AS | Bavarian Nordic vs. Genmab AS | Bavarian Nordic vs. DSV Panalpina AS |
| Corline Biomedical vs. Cantargia AB | Corline Biomedical vs. Kancera AB | Corline Biomedical vs. Gabather AB | Corline Biomedical vs. Genovis AB |
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 Stocks Directory module to find actively traded stocks across global markets.
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