Correlation Between Bergenbio ASA and Nekkar Asa
Can any of the company-specific risk be diversified away by investing in both Bergenbio ASA and Nekkar 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 Nekkar 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 Nekkar Asa, you can compare the effects of market volatilities on Bergenbio ASA and Nekkar 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 Nekkar Asa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bergenbio ASA and Nekkar Asa.
Diversification Opportunities for Bergenbio ASA and Nekkar Asa
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bergenbio and Nekkar is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bergenbio ASA and Nekkar Asa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nekkar 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 Nekkar Asa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nekkar Asa has no effect on the direction of Bergenbio ASA i.e., Bergenbio ASA and Nekkar Asa go up and down completely randomly.
Pair Corralation between Bergenbio ASA and Nekkar Asa
If you would invest 61,817 in Bergenbio ASA on August 28, 2024 and sell it today you would lose (60,547) from holding Bergenbio ASA or give up 97.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bergenbio ASA vs. Nekkar Asa
Performance |
| Timeline |
| Bergenbio ASA |
| Nekkar Asa |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bergenbio ASA and Nekkar Asa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bergenbio ASA and Nekkar Asa
The main advantage of trading using opposite Bergenbio ASA and Nekkar Asa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bergenbio ASA position performs unexpectedly, Nekkar 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 Nekkar Asa will offset losses from the drop in Nekkar Asa's long position.| Bergenbio ASA vs. PCI Biotech Holding | Bergenbio ASA vs. Photocure | Bergenbio ASA vs. Idex ASA | Bergenbio ASA vs. XXL ASA |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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