Correlation Between XSpray Pharma and Intervacc

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

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

Diversification Opportunities for XSpray Pharma and Intervacc

-0.41

Correlation Coefficient

XSpray Pharma  Intervacc

Very good diversification

The 3 months correlation between XSpray and Intervacc is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding XSpray Pharma AB and Intervacc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intervacc AB and XSpray 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 XSpray Pharma 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 XSpray Pharma i.e., XSpray Pharma and Intervacc go up and down completely randomly.

Pair Corralation between XSpray Pharma and Intervacc

Assuming the 90 days trading horizon XSpray Pharma AB is expected to generate 1.17 times more return on investment than Intervacc. However, XSpray Pharma is 1.17 times more volatile than Intervacc AB. It trades about 0.15 of its potential returns per unit of risk. Intervacc AB is currently generating about 0.04 per unit of risk. If you would invest  3,650  in XSpray Pharma AB on April 20, 2025 and sell it today you would earn a total of  1,480  from holding XSpray Pharma AB or generate 40.55% return on investment over 90 days.

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

XSpray Pharma AB  vs.  Intervacc AB

XSpray Pharma AB

Risk-Adjusted Performance

Good

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

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 XSpray Pharma and Intervacc

The main advantage of trading using opposite XSpray Pharma and Intervacc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XSpray Pharma 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 XSpray Pharma 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.