Correlation Between Vicore Pharma and Bavarian Nordic
Can any of the company-specific risk be diversified away by investing in both Vicore Pharma 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 Vicore Pharma and Bavarian Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vicore Pharma Holding and Bavarian Nordic, you can compare the effects of market volatilities on Vicore Pharma 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 Vicore Pharma with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vicore Pharma and Bavarian Nordic.
Diversification Opportunities for Vicore Pharma and Bavarian Nordic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vicore and Bavarian is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vicore Pharma Holding and Bavarian Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic and Vicore Pharma 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 Vicore Pharma Holding 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 Vicore Pharma i.e., Vicore Pharma and Bavarian Nordic go up and down completely randomly.
Pair Corralation between Vicore Pharma and Bavarian Nordic
Assuming the 90 days trading horizon Vicore Pharma Holding is expected to generate 0.37 times more return on investment than Bavarian Nordic. However, Vicore Pharma Holding is 2.69 times less risky than Bavarian Nordic. It trades about -0.15 of its potential returns per unit of risk. Bavarian Nordic is currently generating about -0.11 per unit of risk. If you would invest 828.00 in Vicore Pharma Holding on August 29, 2024 and sell it today you would lose (52.00) from holding Vicore Pharma Holding or give up 6.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vicore Pharma Holding vs. Bavarian Nordic
Performance |
| Timeline |
| Vicore Pharma Holding |
| Bavarian Nordic |
Vicore Pharma and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vicore Pharma and Bavarian Nordic
The main advantage of trading using opposite Vicore Pharma and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vicore Pharma 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.| Vicore Pharma vs. Hansa Biopharma AB | Vicore Pharma vs. Xbrane Biopharma AB | Vicore Pharma vs. BioArctic AB | Vicore Pharma vs. Cantargia 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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