Correlation Between BioPorto and Intervacc

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Can any of the company-specific risk be diversified away by investing in both BioPorto and Intervacc 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 BioPorto and Intervacc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioPorto and Intervacc AB, you can compare the effects of market volatilities on BioPorto and Intervacc 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 BioPorto with a short position of Intervacc. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioPorto and Intervacc.

Diversification Opportunities for BioPorto and Intervacc

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between BioPorto and Intervacc is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BioPorto and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and BioPorto 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 BioPorto are associated (or correlated) with Intervacc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intervacc AB has no effect on the direction of BioPorto i.e., BioPorto and Intervacc go up and down completely randomly.

Pair Corralation between BioPorto and Intervacc

Assuming the 90 days trading horizon BioPorto is expected to generate 0.38 times more return on investment than Intervacc. However, BioPorto is 2.62 times less risky than Intervacc. It trades about -0.14 of its potential returns per unit of risk. Intervacc AB is currently generating about -0.15 per unit of risk. If you would invest  204.00  in BioPorto on October 20, 2024 and sell it today you would lose (56.00) from holding BioPorto or give up 27.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.33%
ValuesDaily Returns

BioPorto  vs.  Intervacc AB

 Performance 
       Timeline  
BioPorto 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days BioPorto has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Intervacc AB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Intervacc AB 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 comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

BioPorto and Intervacc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BioPorto and Intervacc

The main advantage of trading using opposite BioPorto and Intervacc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioPorto position performs unexpectedly, Intervacc 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 Intervacc will offset losses from the drop in Intervacc's long position.
The idea behind BioPorto and Intervacc AB 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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