Correlation Between Bavarian Nordic and Apple
Can any of the company-specific risk be diversified away by investing in both Bavarian Nordic and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bavarian Nordic and Apple Inc, you can compare the effects of market volatilities on Bavarian Nordic and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bavarian Nordic and Apple.
Diversification Opportunities for Bavarian Nordic and Apple
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bavarian and Apple is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bavarian Nordic and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Bavarian Nordic i.e., Bavarian Nordic and Apple go up and down completely randomly.
Pair Corralation between Bavarian Nordic and Apple
Assuming the 90 days trading horizon Bavarian Nordic is expected to under-perform the Apple. In addition to that, Bavarian Nordic is 1.3 times more volatile than Apple Inc. It trades about -0.04 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.03 per unit of volatility. If you would invest 17,085 in Apple Inc on January 25, 2024 and sell it today you would lose (178.50) from holding Apple Inc or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bavarian Nordic vs. Apple Inc
Performance |
| Timeline |
| Bavarian Nordic |
| Apple Inc |
Bavarian Nordic and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bavarian Nordic and Apple
The main advantage of trading using opposite Bavarian Nordic and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bavarian Nordic position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Bavarian Nordic vs. Ambu AS | Bavarian Nordic vs. SAS AB | Bavarian Nordic vs. Zealand Pharma AS | Bavarian Nordic vs. Orphazyme 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |