Correlation Between AVTECH Sweden and Vicore Pharma

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

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

Diversification Opportunities for AVTECH Sweden and Vicore Pharma

-0.29

Correlation Coefficient

AVTECH Sweden  Vicore Pharma

Very good diversification

The 3 months correlation between AVTECH and Vicore is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AVTECH Sweden AB and Vicore Pharma Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicore Pharma Holding and AVTECH Sweden 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 AVTECH Sweden AB are associated (or correlated) with Vicore Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicore Pharma Holding has no effect on the direction of AVTECH Sweden i.e., AVTECH Sweden and Vicore Pharma go up and down completely randomly.

Pair Corralation between AVTECH Sweden and Vicore Pharma

Assuming the 90 days trading horizon AVTECH Sweden AB is expected to under-perform the Vicore Pharma. But the stock apears to be less risky and, when comparing its historical volatility, AVTECH Sweden AB is 1.19 times less risky than Vicore Pharma. The stock trades about -0.05 of its potential returns per unit of risk. The Vicore Pharma Holding is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  872.00  in Vicore Pharma Holding on August 3, 2025 and sell it today you would earn a total of  262.00  from holding Vicore Pharma Holding or generate 30.05% return on investment over 90 days.

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

AVTECH Sweden AB  vs.  Vicore Pharma Holding

AVTECH Sweden AB

Risk-Adjusted Performance

Weakest

Over the last 90 days AVTECH Sweden AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Vicore Pharma Holding

Risk-Adjusted Performance

Fair

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

Pair Trading with AVTECH Sweden and Vicore Pharma

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

The idea behind AVTECH Sweden AB and Vicore Pharma Holding 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.