Correlation Between BioSig Technologies, and Bavarian Nordic

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

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

Diversification Opportunities for BioSig Technologies, and Bavarian Nordic

-0.79

Correlation Coefficient

BioSig Technologies,  Bavarian Nordic

Pay attention - limited upside

The 3 months correlation between BioSig and Bavarian is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding BioSig Technologies, Common and Bavarian Nordic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic AS and BioSig Technologies, 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 BioSig Technologies, Common 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 AS has no effect on the direction of BioSig Technologies, i.e., BioSig Technologies, and Bavarian Nordic go up and down completely randomly.

Pair Corralation between BioSig Technologies, and Bavarian Nordic

Given the investment horizon of 90 days BioSig Technologies, Common is expected to generate 5.01 times more return on investment than Bavarian Nordic. However, BioSig Technologies, is 5.01 times more volatile than Bavarian Nordic AS. It trades about 0.24 of its potential returns per unit of risk. Bavarian Nordic AS is currently generating about -0.13 per unit of risk. If you would invest  31.00  in BioSig Technologies, Common on October 2, 2024 and sell it today you would earn a total of  117.00  from holding BioSig Technologies, Common or generate 377.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

BioSig Technologies, Common  vs.  Bavarian Nordic AS

BioSig Technologies,

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BioSig Technologies, Common are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, BioSig Technologies, displayed solid returns over the last few months and may actually be approaching a breakup point.

Bavarian Nordic AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bavarian Nordic AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with BioSig Technologies, and Bavarian Nordic

The main advantage of trading using opposite BioSig Technologies, and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioSig Technologies, 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.

The idea behind BioSig Technologies, Common and Bavarian Nordic AS 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.