Correlation Between Bonesupport Holding and Invisio Communications
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and Invisio Communications 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 Bonesupport Holding and Invisio Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonesupport Holding AB and Invisio Communications AB, you can compare the effects of market volatilities on Bonesupport Holding and Invisio Communications 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 Bonesupport Holding with a short position of Invisio Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and Invisio Communications.
Diversification Opportunities for Bonesupport Holding and Invisio Communications
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bonesupport and Invisio is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and Invisio Communications AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invisio Communications and Bonesupport Holding 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 Bonesupport Holding AB are associated (or correlated) with Invisio Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invisio Communications has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and Invisio Communications go up and down completely randomly.
Pair Corralation between Bonesupport Holding and Invisio Communications
Assuming the 90 days trading horizon Bonesupport Holding AB is expected to under-perform the Invisio Communications. But the stock apears to be less risky and, when comparing its historical volatility, Bonesupport Holding AB is 1.38 times less risky than Invisio Communications. The stock trades about -0.04 of its potential returns per unit of risk. The Invisio Communications AB is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 27,150 in Invisio Communications AB on October 26, 2024 and sell it today you would earn a total of 6,200 from holding Invisio Communications AB or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonesupport Holding AB vs. Invisio Communications AB
Performance |
| Timeline |
| Bonesupport Holding |
| Invisio Communications |
Bonesupport Holding and Invisio Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonesupport Holding and Invisio Communications
The main advantage of trading using opposite Bonesupport Holding and Invisio Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, Invisio Communications 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 Invisio Communications will offset losses from the drop in Invisio Communications' long position.| Bonesupport Holding vs. BioArctic AB | Bonesupport Holding vs. Camurus AB | Bonesupport Holding vs. Xvivo Perfusion AB | Bonesupport Holding vs. Surgical Science Sweden |
| Invisio Communications vs. Hexatronic Group AB | Invisio Communications vs. CellaVision AB | Invisio Communications vs. Xvivo Perfusion AB | Invisio Communications vs. Sectra AB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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