Correlation Between Invisio Communications and Xvivo Perfusion
Can any of the company-specific risk be diversified away by investing in both Invisio Communications and Xvivo Perfusion 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 Xvivo Perfusion 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 Xvivo Perfusion AB, you can compare the effects of market volatilities on Invisio Communications and Xvivo Perfusion 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 Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invisio Communications and Xvivo Perfusion.
Diversification Opportunities for Invisio Communications and Xvivo Perfusion
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invisio and Xvivo is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Invisio Communications AB and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion 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 Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of Invisio Communications i.e., Invisio Communications and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between Invisio Communications and Xvivo Perfusion
Assuming the 90 days trading horizon Invisio Communications is expected to generate 1.46 times less return on investment than Xvivo Perfusion. But when comparing it to its historical volatility, Invisio Communications AB is 1.27 times less risky than Xvivo Perfusion. It trades about 0.05 of its potential returns per unit of risk. Xvivo Perfusion AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24,050 in Xvivo Perfusion AB on November 5, 2024 and sell it today you would earn a total of 22,550 from holding Xvivo Perfusion AB or generate 93.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invisio Communications AB vs. Xvivo Perfusion AB
Performance |
| Timeline |
| Invisio Communications |
| Xvivo Perfusion AB |
Invisio Communications and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invisio Communications and Xvivo Perfusion
The main advantage of trading using opposite Invisio Communications and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invisio Communications position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion'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 |
| Xvivo Perfusion vs. Vitrolife AB | Xvivo Perfusion vs. BioArctic AB | Xvivo Perfusion vs. CellaVision AB | Xvivo Perfusion vs. Invisio Communications 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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