Correlation Between Bion Environmental and Vow ASA

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

By analyzing existing cross correlation between Bion Environmental Technologies and Vow ASA, you can compare the effects of market volatilities on Bion Environmental and Vow ASA 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 Bion Environmental with a short position of Vow ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bion Environmental and Vow ASA.

Diversification Opportunities for Bion Environmental and Vow ASA

0.0

Correlation Coefficient

Bion Environmental  Vow ASA

Pay attention - limited upside

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

Pair Corralation between Bion Environmental and Vow ASA

If you would invest  9.00  in Bion Environmental Technologies on May 1, 2025 and sell it today you would earn a total of  9.00  from holding Bion Environmental Technologies or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Bion Environmental Technologie  vs.  Vow ASA

Bion Environmental

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bion Environmental Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Bion Environmental unveiled solid returns over the last few months and may actually be approaching a breakup point.

Vow ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vow ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Vow ASA is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bion Environmental and Vow ASA

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

The idea behind Bion Environmental Technologies and Vow ASA 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.