Correlation Between LED IBond and Bavarian Nordic
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By analyzing existing cross correlation between LED iBond International and Bavarian Nordic, you can compare the effects of market volatilities on LED IBond and Bavarian Nordic 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 LED IBond with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of LED IBond and Bavarian Nordic.
Diversification Opportunities for LED IBond and Bavarian Nordic
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LED and Bavarian is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding LED iBond International and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic and LED IBond 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 LED iBond International are associated (or correlated) with Bavarian Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bavarian Nordic has no effect on the direction of LED IBond i.e., LED IBond and Bavarian Nordic go up and down completely randomly.
Pair Corralation between LED IBond and Bavarian Nordic
Assuming the 90 days trading horizon LED iBond International is expected to under-perform the Bavarian Nordic. In addition to that, LED IBond is 1.76 times more volatile than Bavarian Nordic. It trades about -0.16 of its total potential returns per unit of risk. Bavarian Nordic is currently generating about -0.18 per unit of volatility. If you would invest 19,220 in Bavarian Nordic on November 27, 2024 and sell it today you would lose (1,965) from holding Bavarian Nordic or give up 10.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LED iBond International vs. Bavarian Nordic
Performance |
| Timeline |
| LED iBond International |
| Bavarian Nordic |
LED IBond and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LED IBond and Bavarian Nordic
The main advantage of trading using opposite LED IBond and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LED IBond position performs unexpectedly, Bavarian Nordic 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 Bavarian Nordic will offset losses from the drop in Bavarian Nordic's long position.| LED IBond vs. Scandinavian Medical Solutions | LED IBond vs. Prime Office AS | LED IBond vs. Nordinvestments AS | LED IBond vs. Djurslands Bank |
| Bavarian Nordic vs. Ambu AS | Bavarian Nordic vs. Danske Bank AS | Bavarian Nordic vs. Genmab AS | Bavarian Nordic vs. DSV Panalpina 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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