Correlation Between Moberg Pharma and BioInvent International

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

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

Diversification Opportunities for Moberg Pharma and BioInvent International

0.44

Correlation Coefficient

Moberg Pharma  BioInvent International

Very weak diversification

The 3 months correlation between Moberg and BioInvent is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Moberg Pharma AB and BioInvent International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioInvent International and Moberg Pharma 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 Moberg Pharma AB are associated (or correlated) with BioInvent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioInvent International has no effect on the direction of Moberg Pharma i.e., Moberg Pharma and BioInvent International go up and down completely randomly.

Pair Corralation between Moberg Pharma and BioInvent International

Assuming the 90 days trading horizon Moberg Pharma is expected to generate 2.8 times less return on investment than BioInvent International. But when comparing it to its historical volatility, Moberg Pharma AB is 1.74 times less risky than BioInvent International. It trades about 0.07 of its potential returns per unit of risk. BioInvent International AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2,910  in BioInvent International AB on April 23, 2025 and sell it today you would earn a total of  905.00  from holding BioInvent International AB or generate 31.1% return on investment over 90 days.

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

Moberg Pharma AB  vs.  BioInvent International AB

Moberg Pharma AB

Risk-Adjusted Performance

Modest

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

BioInvent International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BioInvent International AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BioInvent International unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moberg Pharma and BioInvent International

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

The idea behind Moberg Pharma AB and BioInvent International 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.