Correlation Between Nykode Therapeutics and Bergenbio ASA
Can any of the company-specific risk be diversified away by investing in both Nykode Therapeutics and Bergenbio 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 Nykode Therapeutics and Bergenbio ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nykode Therapeutics ASA and Bergenbio ASA, you can compare the effects of market volatilities on Nykode Therapeutics and Bergenbio 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 Nykode Therapeutics with a short position of Bergenbio ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nykode Therapeutics and Bergenbio ASA.
Diversification Opportunities for Nykode Therapeutics and Bergenbio ASA
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nykode and Bergenbio is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nykode Therapeutics ASA and Bergenbio ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergenbio ASA and Nykode Therapeutics 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 Nykode Therapeutics ASA are associated (or correlated) with Bergenbio ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergenbio ASA has no effect on the direction of Nykode Therapeutics i.e., Nykode Therapeutics and Bergenbio ASA go up and down completely randomly.
Pair Corralation between Nykode Therapeutics and Bergenbio ASA
Assuming the 90 days trading horizon Nykode Therapeutics ASA is expected to under-perform the Bergenbio ASA. But the stock apears to be less risky and, when comparing its historical volatility, Nykode Therapeutics ASA is 1.16 times less risky than Bergenbio ASA. The stock trades about -0.1 of its potential returns per unit of risk. The Bergenbio ASA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,816 in Bergenbio ASA on September 1, 2024 and sell it today you would lose (729.00) from holding Bergenbio ASA or give up 40.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Nykode Therapeutics ASA vs. Bergenbio ASA
Performance |
| Timeline |
| Nykode Therapeutics ASA |
| Bergenbio ASA |
Nykode Therapeutics and Bergenbio ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nykode Therapeutics and Bergenbio ASA
The main advantage of trading using opposite Nykode Therapeutics and Bergenbio ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nykode Therapeutics position performs unexpectedly, Bergenbio 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 Bergenbio ASA will offset losses from the drop in Bergenbio ASA's long position.| Nykode Therapeutics vs. Equinor ASA | Nykode Therapeutics vs. DnB ASA | Nykode Therapeutics vs. Aker BP ASA | Nykode Therapeutics vs. Telenor ASA |
| Bergenbio ASA vs. PCI Biotech Holding | Bergenbio ASA vs. Photocure | Bergenbio ASA vs. Idex ASA | Bergenbio ASA vs. XXL ASA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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