Correlation Between Bergenbio ASA and Kitron ASA
Can any of the company-specific risk be diversified away by investing in both Bergenbio ASA and Kitron ASA 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 Bergenbio ASA and Kitron ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bergenbio ASA and Kitron ASA, you can compare the effects of market volatilities on Bergenbio ASA and Kitron ASA 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 Bergenbio ASA with a short position of Kitron ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bergenbio ASA and Kitron ASA.
Diversification Opportunities for Bergenbio ASA and Kitron ASA
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bergenbio and Kitron is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bergenbio ASA and Kitron ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kitron ASA and Bergenbio ASA 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 Bergenbio ASA are associated (or correlated) with Kitron ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kitron ASA has no effect on the direction of Bergenbio ASA i.e., Bergenbio ASA and Kitron ASA go up and down completely randomly.
Pair Corralation between Bergenbio ASA and Kitron ASA
Assuming the 90 days trading horizon Bergenbio ASA is expected to generate 3.04 times more return on investment than Kitron ASA. However, Bergenbio ASA is 3.04 times more volatile than Kitron ASA. It trades about 0.03 of its potential returns per unit of risk. Kitron ASA is currently generating about -0.02 per unit of risk. If you would invest 1,300 in Bergenbio ASA on August 28, 2024 and sell it today you would lose (30.00) from holding Bergenbio ASA or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bergenbio ASA vs. Kitron ASA
Performance |
| Timeline |
| Bergenbio ASA |
| Kitron ASA |
Bergenbio ASA and Kitron ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bergenbio ASA and Kitron ASA
The main advantage of trading using opposite Bergenbio ASA and Kitron ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bergenbio ASA position performs unexpectedly, Kitron ASA 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 Kitron ASA will offset losses from the drop in Kitron ASA's long position.| Bergenbio ASA vs. PCI Biotech Holding | Bergenbio ASA vs. Photocure | Bergenbio ASA vs. Idex ASA | Bergenbio ASA vs. XXL ASA |
| Kitron ASA vs. Europris ASA | Kitron ASA vs. Kongsberg Gruppen ASA | Kitron ASA vs. Nordic Semiconductor ASA | Kitron ASA vs. Storebrand ASA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |