Correlation Between Invisio Communications and Systemair
Can any of the company-specific risk be diversified away by investing in both Invisio Communications and Systemair 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 Invisio Communications and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invisio Communications AB and Systemair AB, you can compare the effects of market volatilities on Invisio Communications and Systemair 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 Invisio Communications with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invisio Communications and Systemair.
Diversification Opportunities for Invisio Communications and Systemair
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Invisio and Systemair is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Invisio Communications AB and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Invisio Communications 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 Invisio Communications AB are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Invisio Communications i.e., Invisio Communications and Systemair go up and down completely randomly.
Pair Corralation between Invisio Communications and Systemair
Assuming the 90 days trading horizon Invisio Communications is expected to generate 14.06 times less return on investment than Systemair. But when comparing it to its historical volatility, Invisio Communications AB is 1.28 times less risky than Systemair. It trades about 0.01 of its potential returns per unit of risk. Systemair AB is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,520 in Systemair AB on August 29, 2024 and sell it today you would earn a total of 690.00 from holding Systemair AB or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invisio Communications AB vs. Systemair AB
Performance |
| Timeline |
| Invisio Communications |
| Systemair AB |
Invisio Communications and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invisio Communications and Systemair
The main advantage of trading using opposite Invisio Communications and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invisio Communications position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Invisio Communications vs. Hexatronic Group AB | Invisio Communications vs. CellaVision AB | Invisio Communications vs. Xvivo Perfusion AB | Invisio Communications vs. Sectra AB |
| Systemair vs. Addtech AB | Systemair vs. Teqnion AB | Systemair vs. Vitec Software Group | Systemair vs. Lagercrantz Group 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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