Correlation Between Bergenbio ASA and Questerre Energy
Can any of the company-specific risk be diversified away by investing in both Bergenbio ASA and Questerre Energy 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 Questerre Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bergenbio ASA and Questerre Energy, you can compare the effects of market volatilities on Bergenbio ASA and Questerre Energy 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 Questerre Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bergenbio ASA and Questerre Energy.
Diversification Opportunities for Bergenbio ASA and Questerre Energy
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bergenbio and Questerre is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bergenbio ASA and Questerre Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Questerre Energy 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 Questerre Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Questerre Energy has no effect on the direction of Bergenbio ASA i.e., Bergenbio ASA and Questerre Energy go up and down completely randomly.
Pair Corralation between Bergenbio ASA and Questerre Energy
Assuming the 90 days trading horizon Bergenbio ASA is expected to under-perform the Questerre Energy. In addition to that, Bergenbio ASA is 3.63 times more volatile than Questerre Energy. It trades about -0.03 of its total potential returns per unit of risk. Questerre Energy is currently generating about -0.01 per unit of volatility. If you would invest 219.00 in Questerre Energy on January 26, 2025 and sell it today you would lose (21.00) from holding Questerre Energy or give up 9.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bergenbio ASA vs. Questerre Energy
Performance |
| Timeline |
| Bergenbio ASA |
| Questerre Energy |
Bergenbio ASA and Questerre Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bergenbio ASA and Questerre Energy
The main advantage of trading using opposite Bergenbio ASA and Questerre Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bergenbio ASA position performs unexpectedly, Questerre Energy 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 Questerre Energy will offset losses from the drop in Questerre Energy'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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