Correlation Between Vicore Pharma and Combigene

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

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

Diversification Opportunities for Vicore Pharma and Combigene

0.21

Correlation Coefficient

Vicore Pharma  Combigene

Modest diversification

The 3 months correlation between Vicore and Combigene is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Vicore Pharma Holding and Combigene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Combigene AB and Vicore 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 Vicore Pharma Holding are associated (or correlated) with Combigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Combigene AB has no effect on the direction of Vicore Pharma i.e., Vicore Pharma and Combigene go up and down completely randomly.

Pair Corralation between Vicore Pharma and Combigene

Assuming the 90 days trading horizon Vicore Pharma Holding is expected to generate 1.15 times more return on investment than Combigene. However, Vicore Pharma is 1.15 times more volatile than Combigene AB. It trades about 0.06 of its potential returns per unit of risk. Combigene AB is currently generating about 0.01 per unit of risk. If you would invest  719.00  in Vicore Pharma Holding on April 23, 2025 and sell it today you would earn a total of  61.00  from holding Vicore Pharma Holding or generate 8.48% return on investment over 90 days.

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

Vicore Pharma Holding  vs.  Combigene AB

Vicore Pharma Holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vicore Pharma Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vicore Pharma may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Combigene AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Combigene AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Combigene is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Vicore Pharma and Combigene

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

The idea behind Vicore Pharma Holding and Combigene 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.