Correlation Between Intervacc and BICO Group

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

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

Diversification Opportunities for Intervacc and BICO Group

-0.3

Correlation Coefficient

Intervacc  BICO Group

Very good diversification

The 3 months correlation between Intervacc and BICO is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Intervacc AB and BICO Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BICO Group AB and Intervacc 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 Intervacc AB are associated (or correlated) with BICO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BICO Group AB has no effect on the direction of Intervacc i.e., Intervacc and BICO Group go up and down completely randomly.

Pair Corralation between Intervacc and BICO Group

Assuming the 90 days trading horizon Intervacc is expected to generate 1.68 times less return on investment than BICO Group. In addition to that, Intervacc is 1.15 times more volatile than BICO Group AB. It trades about 0.07 of its total potential returns per unit of risk. BICO Group AB is currently generating about 0.14 per unit of volatility. If you would invest  3,388  in BICO Group AB on April 20, 2025 and sell it today you would earn a total of  210.00  from holding BICO Group AB or generate 6.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Intervacc AB  vs.  BICO Group AB

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 uncertain basic indicators, Intervacc may actually be approaching a critical reversion point that can send shares even higher in August 2025.

BICO Group AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BICO Group AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, BICO Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Intervacc and BICO Group

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

The idea behind Intervacc AB and BICO Group 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.