Correlation Between Immunovia Publ and Scibase AB

Can any of the company-specific risk be diversified away by investing in both Immunovia Publ and Scibase AB 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 Scibase AB 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 Scibase AB, you can compare the effects of market volatilities on Immunovia Publ and Scibase AB 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 Scibase AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and Scibase AB.

Diversification Opportunities for Immunovia Publ and Scibase AB

-0.41

Correlation Coefficient

Immunovia Publ  Scibase AB

Very good diversification

The 3 months correlation between Immunovia and Scibase is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and Scibase AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scibase 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 Scibase AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scibase AB has no effect on the direction of Immunovia Publ i.e., Immunovia Publ and Scibase AB go up and down completely randomly.

Pair Corralation between Immunovia Publ and Scibase AB

Assuming the 90 days trading horizon Immunovia publ AB is expected to generate 2.74 times more return on investment than Scibase AB. However, Immunovia Publ is 2.74 times more volatile than Scibase AB. It trades about 0.0 of its potential returns per unit of risk. Scibase AB is currently generating about -0.05 per unit of risk. If you would invest  2,450  in Immunovia publ AB on October 5, 2024 and sell it today you would lose (2,396) from holding Immunovia publ AB or give up 97.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Immunovia publ AB  vs.  Scibase AB

Immunovia publ AB

Risk-Adjusted Performance

0 of 100

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 February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Scibase AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scibase AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Immunovia Publ and Scibase AB

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

The idea behind Immunovia publ AB and Scibase 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.