Correlation Between Kinnevik Investment and Intellego Technologies

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

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

Diversification Opportunities for Kinnevik Investment and Intellego Technologies

0.84

Correlation Coefficient

Kinnevik Investment  Intellego Technologies

Very poor diversification

The 3 months correlation between Kinnevik and Intellego is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Intellego Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellego Technologies and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Intellego Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellego Technologies has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Intellego Technologies go up and down completely randomly.

Pair Corralation between Kinnevik Investment and Intellego Technologies

Assuming the 90 days trading horizon Kinnevik Investment is expected to generate 2.4 times less return on investment than Intellego Technologies. But when comparing it to its historical volatility, Kinnevik Investment AB is 1.42 times less risky than Intellego Technologies. It trades about 0.16 of its potential returns per unit of risk. Intellego Technologies AB is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  6,550  in Intellego Technologies AB on April 23, 2025 and sell it today you would earn a total of  6,670  from holding Intellego Technologies AB or generate 101.83% return on investment over 90 days.

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

Kinnevik Investment AB  vs.  Intellego Technologies AB

Kinnevik Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinnevik Investment AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Kinnevik Investment sustained solid returns over the last few months and may actually be approaching a breakup point.

Intellego Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intellego Technologies AB are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Intellego Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kinnevik Investment and Intellego Technologies

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

The idea behind Kinnevik Investment AB and Intellego Technologies 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.