Correlation Between Maj Invest and Bavarian Nordic

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Bavarian Nordic 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 Maj Invest and Bavarian Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest Glob and Bavarian Nordic, you can compare the effects of market volatilities on Maj Invest 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 Maj Invest with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Bavarian Nordic.

Diversification Opportunities for Maj Invest and Bavarian Nordic

-0.82
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Maj and Bavarian is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Glob and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic and Maj Invest 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 Maj Invest Glob 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 Maj Invest i.e., Maj Invest and Bavarian Nordic go up and down completely randomly.

Pair Corralation between Maj Invest and Bavarian Nordic

Assuming the 90 days trading horizon Maj Invest Glob is expected to generate 0.14 times more return on investment than Bavarian Nordic. However, Maj Invest Glob is 7.05 times less risky than Bavarian Nordic. It trades about 0.03 of its potential returns per unit of risk. Bavarian Nordic is currently generating about 0.0 per unit of risk. If you would invest  14,090  in Maj Invest Glob on September 13, 2024 and sell it today you would earn a total of  50.00  from holding Maj Invest Glob or generate 0.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy95.65%
ValuesDaily Returns

Maj Invest Glob  vs.  Bavarian Nordic

 Performance 
       Timeline  
Maj Invest Glob 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Maj Invest Glob are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Maj Invest may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Bavarian Nordic 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bavarian Nordic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Maj Invest and Bavarian Nordic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Maj Invest and Bavarian Nordic

The main advantage of trading using opposite Maj Invest and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest 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.
Maj Invest vs. Groenlandsbanken AS
Maj Invest vs. North Media AS
Maj Invest vs. Nordfyns Bank AS
Maj Invest vs. Embla Medical hf
The idea behind Maj Invest Glob and Bavarian Nordic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Bavarian Nordic vs. Dataproces Group AS
Bavarian Nordic vs. cBrain AS
Bavarian Nordic vs. Nilfisk Holding AS
Bavarian Nordic vs. Danish Aerospace
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY