Correlation Between SDG Invest and Bavarian Nordic
Can any of the company-specific risk be diversified away by investing in both SDG 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 SDG 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 SDG Invest Globale and Bavarian Nordic, you can compare the effects of market volatilities on SDG 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 SDG Invest with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SDG Invest and Bavarian Nordic.
Diversification Opportunities for SDG Invest and Bavarian Nordic
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SDG and Bavarian is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SDG Invest Globale and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic and SDG 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 SDG Invest Globale 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 SDG Invest i.e., SDG Invest and Bavarian Nordic go up and down completely randomly.
Pair Corralation between SDG Invest and Bavarian Nordic
Assuming the 90 days trading horizon SDG Invest Globale is expected to generate 0.27 times more return on investment than Bavarian Nordic. However, SDG Invest Globale is 3.76 times less risky than Bavarian Nordic. It trades about 0.04 of its potential returns per unit of risk. Bavarian Nordic is currently generating about -0.04 per unit of risk. If you would invest 19,870 in SDG Invest Globale on October 25, 2024 and sell it today you would earn a total of 330.00 from holding SDG Invest Globale or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.67% |
| Values | Daily Returns |
SDG Invest Globale vs. Bavarian Nordic
Performance |
| Timeline |
| SDG Invest Globale |
| Bavarian Nordic |
SDG Invest and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SDG Invest and Bavarian Nordic
The main advantage of trading using opposite SDG Invest and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SDG 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.| SDG Invest vs. Lollands Bank | SDG Invest vs. Fynske Bank AS | SDG Invest vs. Formuepleje Mix Medium | SDG Invest vs. PARKEN Sport Entertainment |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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