Correlation Between Ballard Power and Moderna
Can any of the company-specific risk be diversified away by investing in both Ballard Power and Moderna 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 Ballard Power and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballard Power Systems and Moderna, you can compare the effects of market volatilities on Ballard Power and Moderna 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 Ballard Power with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballard Power and Moderna.
Diversification Opportunities for Ballard Power and Moderna
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ballard and Moderna is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ballard Power Systems and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Ballard Power 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 Ballard Power Systems are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Ballard Power i.e., Ballard Power and Moderna go up and down completely randomly.
Pair Corralation between Ballard Power and Moderna
Assuming the 90 days horizon Ballard Power Systems is expected to generate 0.67 times more return on investment than Moderna. However, Ballard Power Systems is 1.5 times less risky than Moderna. It trades about -0.04 of its potential returns per unit of risk. Moderna is currently generating about -0.22 per unit of risk. If you would invest 130.00 in Ballard Power Systems on December 1, 2024 and sell it today you would lose (5.00) from holding Ballard Power Systems or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ballard Power Systems vs. Moderna
Performance |
| Timeline |
| Ballard Power Systems |
| Moderna |
Ballard Power and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ballard Power and Moderna
The main advantage of trading using opposite Ballard Power and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballard Power position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| Ballard Power vs. Powercell Sweden | Ballard Power vs. Nel ASA | Ballard Power vs. ITM Power Plc | Ballard Power vs. Plug Power |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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