Correlation Between Bavarian Nordic and GreenMobility
Can any of the company-specific risk be diversified away by investing in both Bavarian Nordic and GreenMobility 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 GreenMobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bavarian Nordic and GreenMobility AS, you can compare the effects of market volatilities on Bavarian Nordic and GreenMobility 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 GreenMobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bavarian Nordic and GreenMobility.
Diversification Opportunities for Bavarian Nordic and GreenMobility
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bavarian and GreenMobility is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bavarian Nordic and GreenMobility AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenMobility AS 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 GreenMobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenMobility AS has no effect on the direction of Bavarian Nordic i.e., Bavarian Nordic and GreenMobility go up and down completely randomly.
Pair Corralation between Bavarian Nordic and GreenMobility
Assuming the 90 days trading horizon Bavarian Nordic is expected to under-perform the GreenMobility. In addition to that, Bavarian Nordic is 1.22 times more volatile than GreenMobility AS. It trades about -0.08 of its total potential returns per unit of risk. GreenMobility AS is currently generating about -0.01 per unit of volatility. If you would invest 3,200 in GreenMobility AS on September 1, 2024 and sell it today you would lose (80.00) from holding GreenMobility AS or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bavarian Nordic vs. GreenMobility AS
Performance |
| Timeline |
| Bavarian Nordic |
| GreenMobility AS |
Bavarian Nordic and GreenMobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bavarian Nordic and GreenMobility
The main advantage of trading using opposite Bavarian Nordic and GreenMobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bavarian Nordic position performs unexpectedly, GreenMobility 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 GreenMobility will offset losses from the drop in GreenMobility'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 |
| GreenMobility vs. Sparinvest INDEX Globale | GreenMobility vs. Bavarian Nordic | GreenMobility vs. Investeringsselskabet Luxor AS | GreenMobility 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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