Correlation Between BICO Group and Intervacc
Can any of the company-specific risk be diversified away by investing in both BICO Group 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 BICO Group and Intervacc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BICO Group AB and Intervacc AB, you can compare the effects of market volatilities on BICO Group 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 BICO Group with a short position of Intervacc. Check out your portfolio center. Please also check ongoing floating volatility patterns of BICO Group and Intervacc.
Diversification Opportunities for BICO Group and Intervacc
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BICO and Intervacc is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding BICO Group AB and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and BICO Group 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 BICO Group 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 BICO Group i.e., BICO Group and Intervacc go up and down completely randomly.
Pair Corralation between BICO Group and Intervacc
Assuming the 90 days trading horizon BICO Group AB is expected to under-perform the Intervacc. But the stock apears to be less risky and, when comparing its historical volatility, BICO Group AB is 1.04 times less risky than Intervacc. The stock trades about -0.08 of its potential returns per unit of risk. The Intervacc AB is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Intervacc AB on September 1, 2024 and sell it today you would lose (28.00) from holding Intervacc AB or give up 10.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
BICO Group AB vs. Intervacc AB
Performance |
| Timeline |
| BICO Group AB |
| Intervacc AB |
BICO Group and Intervacc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BICO Group and Intervacc
The main advantage of trading using opposite BICO Group and Intervacc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BICO Group 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.| BICO Group vs. Xvivo Perfusion AB | BICO Group vs. Bactiguard Holding AB | BICO Group vs. Stille AB | BICO Group vs. SpectraCure AB |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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