Correlation Between Acconeer and BioInvent International

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

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

Diversification Opportunities for Acconeer and BioInvent International

0.6

Correlation Coefficient

Acconeer  BioInvent International

Poor diversification

The 3 months correlation between Acconeer and BioInvent is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Acconeer AB and BioInvent International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioInvent International and Acconeer 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 Acconeer AB are associated (or correlated) with BioInvent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioInvent International has no effect on the direction of Acconeer i.e., Acconeer and BioInvent International go up and down completely randomly.

Pair Corralation between Acconeer and BioInvent International

Assuming the 90 days trading horizon Acconeer AB is expected to under-perform the BioInvent International. But the stock apears to be less risky and, when comparing its historical volatility, Acconeer AB is 1.45 times less risky than BioInvent International. The stock trades about -0.02 of its potential returns per unit of risk. The BioInvent International AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2,910  in BioInvent International AB on April 23, 2025 and sell it today you would earn a total of  905.00  from holding BioInvent International AB or generate 31.1% return on investment over 90 days.

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

Acconeer AB  vs.  BioInvent International AB

Acconeer AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acconeer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Acconeer is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

BioInvent International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BioInvent International AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BioInvent International unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acconeer and BioInvent International

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

The idea behind Acconeer AB and BioInvent International 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.