Correlation Between IRLAB Therapeutics and Intervacc

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

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

Diversification Opportunities for IRLAB Therapeutics and Intervacc

0.43

Correlation Coefficient

IRLAB Therapeutics  Intervacc

Very weak diversification

The 3 months correlation between IRLAB and Intervacc is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding IRLAB Therapeutics AB and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and IRLAB Therapeutics 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 IRLAB Therapeutics 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 IRLAB Therapeutics i.e., IRLAB Therapeutics and Intervacc go up and down completely randomly.

Pair Corralation between IRLAB Therapeutics and Intervacc

Assuming the 90 days trading horizon IRLAB Therapeutics AB is expected to under-perform the Intervacc. In addition to that, IRLAB Therapeutics is 1.65 times more volatile than Intervacc AB. It trades about -0.16 of its total potential returns per unit of risk. Intervacc AB is currently generating about 0.04 per unit of volatility. If you would invest  95.00  in Intervacc AB on April 21, 2025 and sell it today you would earn a total of  4.00  from holding Intervacc AB or generate 4.21% return on investment over 90 days.

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

IRLAB Therapeutics AB  vs.  Intervacc AB

IRLAB Therapeutics

Risk-Adjusted Performance

Very Weak

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

Intervacc AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intervacc AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Intervacc may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with IRLAB Therapeutics and Intervacc

The main advantage of trading using opposite IRLAB Therapeutics and Intervacc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRLAB Therapeutics 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 IRLAB Therapeutics 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.