Correlation Between Sparinvest INDEX and Bavarian Nordic
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By analyzing existing cross correlation between Sparinvest INDEX Globale and Bavarian Nordic, you can compare the effects of market volatilities on Sparinvest INDEX 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 Sparinvest INDEX with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest INDEX and Bavarian Nordic.
Diversification Opportunities for Sparinvest INDEX and Bavarian Nordic
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sparinvest and Bavarian is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest INDEX Globale and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic and Sparinvest INDEX 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 Sparinvest INDEX 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 Sparinvest INDEX i.e., Sparinvest INDEX and Bavarian Nordic go up and down completely randomly.
Pair Corralation between Sparinvest INDEX and Bavarian Nordic
Assuming the 90 days trading horizon Sparinvest INDEX Globale is expected to generate 0.27 times more return on investment than Bavarian Nordic. However, Sparinvest INDEX Globale is 3.66 times less risky than Bavarian Nordic. It trades about 0.24 of its potential returns per unit of risk. Bavarian Nordic is currently generating about -0.01 per unit of risk. If you would invest 15,062 in Sparinvest INDEX Globale on November 4, 2024 and sell it today you would earn a total of 440.00 from holding Sparinvest INDEX Globale or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest INDEX Globale vs. Bavarian Nordic
Performance |
| Timeline |
| Sparinvest INDEX Globale |
| Bavarian Nordic |
Sparinvest INDEX and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest INDEX and Bavarian Nordic
The main advantage of trading using opposite Sparinvest INDEX and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest INDEX 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.| Sparinvest INDEX vs. Sparinvest INDEX Europa | Sparinvest INDEX vs. Sparinvest INDEX Hj | Sparinvest INDEX vs. Sparinvest SICAV Procedo | Sparinvest INDEX vs. Sparinvest Mellemlange |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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