Correlation Between Karolinska Development and Intervacc

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

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

Diversification Opportunities for Karolinska Development and Intervacc

0.21

Correlation Coefficient

Karolinska Development  Intervacc

Modest diversification

The 3 months correlation between Karolinska and Intervacc is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Karolinska Development AB and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and Karolinska Development 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 Karolinska Development 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 Karolinska Development i.e., Karolinska Development and Intervacc go up and down completely randomly.

Pair Corralation between Karolinska Development and Intervacc

Assuming the 90 days trading horizon Karolinska Development is expected to generate 1.21 times less return on investment than Intervacc. But when comparing it to its historical volatility, Karolinska Development AB is 1.46 times less risky than Intervacc. It trades about 0.08 of its potential returns per unit of risk. Intervacc AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  94.00  in Intervacc AB on April 24, 2025 and sell it today you would earn a total of  10.00  from holding Intervacc AB or generate 10.64% return on investment over 90 days.

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

Karolinska Development AB  vs.  Intervacc AB

Karolinska Development

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Karolinska Development AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Karolinska Development may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 Karolinska Development and Intervacc

The main advantage of trading using opposite Karolinska Development and Intervacc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karolinska Development 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 Karolinska Development 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.