Correlation Between Kneat and Intervacc

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

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

Diversification Opportunities for Kneat and Intervacc

0.74

Correlation Coefficient

Kneat  Intervacc

Poor diversification

The 3 months correlation between Kneat and Intervacc is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kneat Inc and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and Kneat 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 Kneat Inc 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 Kneat i.e., Kneat and Intervacc go up and down completely randomly.

Pair Corralation between Kneat and Intervacc

Assuming the 90 days trading horizon Kneat Inc is expected to under-perform the Intervacc. But the stock apears to be less risky and, when comparing its historical volatility, Kneat Inc is 1.71 times less risky than Intervacc. The stock trades about 0.0 of its potential returns per unit of risk. The Intervacc AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  95.00  in Intervacc AB on April 20, 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	Significant
Accuracy	93.75%
Values	Daily Returns

Kneat Inc  vs.  Intervacc AB

Kneat Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kneat Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Kneat is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the 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 uncertain basic indicators, Intervacc may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Kneat and Intervacc

The main advantage of trading using opposite Kneat and Intervacc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kneat 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 Kneat Inc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.