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

0.52

Correlation Coefficient

Bonesupport Holding  Invisio Communications

Very weak diversification

The 3 months correlation between Bonesupport and Invisio is 0.52. 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 generate 1.13 times more return on investment than Invisio Communications. However, Bonesupport Holding is 1.13 times more volatile than Invisio Communications AB. It trades about 0.03 of its potential returns per unit of risk. Invisio Communications AB is currently generating about -0.08 per unit of risk. If you would invest  30,640  in Bonesupport Holding AB on April 24, 2025 and sell it today you would earn a total of  700.00  from holding Bonesupport Holding AB or generate 2.28% return on investment over 90 days.

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

Bonesupport Holding AB  vs.  Invisio Communications AB

Bonesupport Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bonesupport Holding AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Bonesupport Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Invisio Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Invisio Communications 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.

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.

The idea behind Bonesupport Holding AB and Invisio Communications 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.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.