Correlation Between Nanologica and Bavarian Nordic
Can any of the company-specific risk be diversified away by investing in both Nanologica 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 Nanologica and Bavarian Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanologica AB and Bavarian Nordic, you can compare the effects of market volatilities on Nanologica 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 Nanologica with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanologica and Bavarian Nordic.
Diversification Opportunities for Nanologica and Bavarian Nordic
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanologica and Bavarian is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nanologica AB and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic and Nanologica 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 Nanologica AB 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 Nanologica i.e., Nanologica and Bavarian Nordic go up and down completely randomly.
Pair Corralation between Nanologica and Bavarian Nordic
Assuming the 90 days trading horizon Nanologica AB is expected to under-perform the Bavarian Nordic. In addition to that, Nanologica is 1.26 times more volatile than Bavarian Nordic. It trades about -0.07 of its total potential returns per unit of risk. Bavarian Nordic is currently generating about 0.01 per unit of volatility. If you would invest 22,470 in Bavarian Nordic on August 29, 2024 and sell it today you would lose (3,465) from holding Bavarian Nordic or give up 15.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nanologica AB vs. Bavarian Nordic
Performance |
| Timeline |
| Nanologica AB |
| Bavarian Nordic |
Nanologica and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanologica and Bavarian Nordic
The main advantage of trading using opposite Nanologica and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanologica 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.| Nanologica vs. Senzime AB | Nanologica vs. C Rad AB | Nanologica vs. CellaVision AB | Nanologica vs. Episurf Medical AB |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |