Correlation Between BioInvent International and Moberg Pharma

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

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

Diversification Opportunities for BioInvent International and Moberg Pharma

0.68

Correlation Coefficient

BioInvent International  Moberg Pharma

Poor diversification

The 3 months correlation between BioInvent and Moberg is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BioInvent International AB and Moberg Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moberg Pharma AB and BioInvent International 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 BioInvent International AB are associated (or correlated) with Moberg Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moberg Pharma AB has no effect on the direction of BioInvent International i.e., BioInvent International and Moberg Pharma go up and down completely randomly.

Pair Corralation between BioInvent International and Moberg Pharma

Assuming the 90 days trading horizon BioInvent International AB is expected to generate 1.75 times more return on investment than Moberg Pharma. However, BioInvent International is 1.75 times more volatile than Moberg Pharma AB. It trades about 0.13 of its potential returns per unit of risk. Moberg Pharma AB is currently generating about 0.08 per unit of risk. If you would invest  2,820  in BioInvent International AB on April 20, 2025 and sell it today you would earn a total of  995.00  from holding BioInvent International AB or generate 35.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

BioInvent International AB  vs.  Moberg Pharma AB

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 10 (%) 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.

Moberg Pharma AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Moberg Pharma AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Moberg Pharma unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioInvent International and Moberg Pharma

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

The idea behind BioInvent International AB and Moberg Pharma 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 Commodity Directory module to find actively traded commodities issued by global exchanges.