Correlation Between Isofol Medical and Intervacc

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

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

Diversification Opportunities for Isofol Medical and Intervacc

0.65

Correlation Coefficient

Isofol Medical  Intervacc

Poor diversification

The 3 months correlation between Isofol and Intervacc is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Isofol Medical AB and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and Isofol Medical 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 Isofol Medical 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 Isofol Medical i.e., Isofol Medical and Intervacc go up and down completely randomly.

Pair Corralation between Isofol Medical and Intervacc

Assuming the 90 days trading horizon Isofol Medical AB is expected to generate 2.01 times more return on investment than Intervacc. However, Isofol Medical is 2.01 times more volatile than Intervacc AB. It trades about 0.12 of its potential returns per unit of risk. Intervacc AB is currently generating about 0.11 per unit of risk. If you would invest  91.00  in Isofol Medical AB on April 24, 2025 and sell it today you would earn a total of  10.00  from holding Isofol Medical AB or generate 10.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Isofol Medical AB  vs.  Intervacc AB

Isofol Medical AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Isofol Medical 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 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

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intervacc AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Intervacc unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Isofol Medical and Intervacc

The main advantage of trading using opposite Isofol Medical and Intervacc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isofol Medical 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 Isofol Medical 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..