Correlation Between CirChem AB and Intervacc

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

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

Diversification Opportunities for CirChem AB and Intervacc

-0.47

Correlation Coefficient

CirChem AB  Intervacc

Very good diversification

The 3 months correlation between CirChem and Intervacc is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding CirChem AB and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and CirChem AB 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 CirChem AB 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 CirChem AB i.e., CirChem AB and Intervacc go up and down completely randomly.

Pair Corralation between CirChem AB and Intervacc

Assuming the 90 days trading horizon CirChem AB is expected to generate 0.78 times more return on investment than Intervacc. However, CirChem AB is 1.28 times less risky than Intervacc. It trades about 0.08 of its potential returns per unit of risk. Intervacc AB is currently generating about -0.11 per unit of risk. If you would invest  258.00  in CirChem AB on September 4, 2024 and sell it today you would earn a total of  45.00  from holding CirChem AB or generate 17.44% return on investment over 90 days.

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

CirChem AB  vs.  Intervacc AB

CirChem AB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CirChem AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, CirChem AB sustained solid returns over the last few months and may actually be approaching a breakup point.

Intervacc AB

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with CirChem AB and Intervacc

The main advantage of trading using opposite CirChem AB and Intervacc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CirChem AB 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 CirChem AB 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.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..