Correlation Between Bavarian Nordic and DKINYM

Can any of the company-specific risk be diversified away by investing in both Bavarian Nordic and DKINYM 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 Bavarian Nordic and DKINYM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bavarian Nordic and Investeringsforeningen Danske Invest, you can compare the effects of market volatilities on Bavarian Nordic and DKINYM 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 Bavarian Nordic with a short position of DKINYM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bavarian Nordic and DKINYM.

Diversification Opportunities for Bavarian Nordic and DKINYM

0.0

Correlation Coefficient

Bavarian Nordic  DKINYM

Pay attention - limited upside

The 3 months correlation between Bavarian and DKINYM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bavarian Nordic and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and Bavarian Nordic 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 Bavarian Nordic are associated (or correlated) with DKINYM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of Bavarian Nordic i.e., Bavarian Nordic and DKINYM go up and down completely randomly.

Pair Corralation between Bavarian Nordic and DKINYM

If you would invest  17,795  in Bavarian Nordic on March 29, 2024 and sell it today you would earn a total of  485.00  from holding Bavarian Nordic or generate 2.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bavarian Nordic  vs.  Investeringsforeningen Danske

Bavarian Nordic

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bavarian Nordic are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Bavarian Nordic displayed solid returns over the last few months and may actually be approaching a breakup point.

Investeringsforeningen

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Investeringsforeningen Danske Invest has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, DKINYM is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bavarian Nordic and DKINYM

The main advantage of trading using opposite Bavarian Nordic and DKINYM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bavarian Nordic position performs unexpectedly, DKINYM 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 DKINYM will offset losses from the drop in DKINYM's long position.

The idea behind Bavarian Nordic and Investeringsforeningen Danske Invest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.