Correlation Between Immunovia Publ and Intervacc

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

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

Diversification Opportunities for Immunovia Publ and Intervacc

0.84

Correlation Coefficient

Immunovia Publ  Intervacc

Very poor diversification

The 3 months correlation between Immunovia and Intervacc is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and Immunovia Publ 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 Immunovia publ 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 Immunovia Publ i.e., Immunovia Publ and Intervacc go up and down completely randomly.

Pair Corralation between Immunovia Publ and Intervacc

Assuming the 90 days trading horizon Immunovia publ AB is expected to under-perform the Intervacc. But the stock apears to be less risky and, when comparing its historical volatility, Immunovia publ AB is 2.59 times less risky than Intervacc. The stock trades about -0.36 of its potential returns per unit of risk. The Intervacc AB is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  238.00  in Intervacc AB on December 2, 2024 and sell it today you would lose (130.00) from holding Intervacc AB or give up 54.62% of portfolio value over 90 days.

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

Immunovia publ AB  vs.  Intervacc AB

Immunovia publ AB

Risk-Adjusted Performance

Very Weak

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

Intervacc AB

Risk-Adjusted Performance

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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Immunovia Publ and Intervacc

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

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..