Correlation Between Bavarian Nordic and Fingerprint Cards
Can any of the company-specific risk be diversified away by investing in both Bavarian Nordic and Fingerprint Cards 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 Fingerprint Cards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bavarian Nordic and Fingerprint Cards AB, you can compare the effects of market volatilities on Bavarian Nordic and Fingerprint Cards 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 Fingerprint Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bavarian Nordic and Fingerprint Cards.
Diversification Opportunities for Bavarian Nordic and Fingerprint Cards
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bavarian and Fingerprint is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bavarian Nordic and Fingerprint Cards AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fingerprint Cards 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 Fingerprint Cards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fingerprint Cards has no effect on the direction of Bavarian Nordic i.e., Bavarian Nordic and Fingerprint Cards go up and down completely randomly.
Pair Corralation between Bavarian Nordic and Fingerprint Cards
Assuming the 90 days trading horizon Bavarian Nordic is expected to under-perform the Fingerprint Cards. But the stock apears to be less risky and, when comparing its historical volatility, Bavarian Nordic is 13.15 times less risky than Fingerprint Cards. The stock trades about -0.01 of its potential returns per unit of risk. The Fingerprint Cards AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3.66 in Fingerprint Cards AB on November 4, 2024 and sell it today you would lose (1.84) from holding Fingerprint Cards AB or give up 50.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bavarian Nordic vs. Fingerprint Cards AB
Performance |
| Timeline |
| Bavarian Nordic |
| Fingerprint Cards |
Bavarian Nordic and Fingerprint Cards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bavarian Nordic and Fingerprint Cards
The main advantage of trading using opposite Bavarian Nordic and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bavarian Nordic position performs unexpectedly, Fingerprint Cards 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 Fingerprint Cards will offset losses from the drop in Fingerprint Cards' long position.| Bavarian Nordic vs. Ambu AS | Bavarian Nordic vs. Danske Bank AS | Bavarian Nordic vs. Genmab AS | Bavarian Nordic vs. DSV Panalpina AS |
| Fingerprint Cards vs. GomSpace Group AB | Fingerprint Cards vs. Precise Biometrics AB | Fingerprint Cards vs. Pandora AS | Fingerprint Cards vs. Bavarian Nordic |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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