Correlation Between Desane Group and Inventis

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

By analyzing existing cross correlation between Desane Group Holdings and Inventis, you can compare the effects of market volatilities on Desane Group and Inventis 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 Desane Group with a short position of Inventis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desane Group and Inventis.

Diversification Opportunities for Desane Group and Inventis

-0.34

Correlation Coefficient

Desane Group  Inventis

Very good diversification

The 3 months correlation between Desane and Inventis is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Desane Group Holdings and Inventis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventis and Desane Group 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 Desane Group Holdings are associated (or correlated) with Inventis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventis has no effect on the direction of Desane Group i.e., Desane Group and Inventis go up and down completely randomly.

Pair Corralation between Desane Group and Inventis

Assuming the 90 days trading horizon Desane Group Holdings is expected to generate 0.42 times more return on investment than Inventis. However, Desane Group Holdings is 2.35 times less risky than Inventis. It trades about 0.1 of its potential returns per unit of risk. Inventis is currently generating about -0.18 per unit of risk. If you would invest  80.00  in Desane Group Holdings on April 25, 2025 and sell it today you would earn a total of  13.00  from holding Desane Group Holdings or generate 16.25% return on investment over 90 days.

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

Desane Group Holdings  vs.  Inventis

Desane Group Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Desane Group Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Desane Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Inventis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inventis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Desane Group and Inventis

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

The idea behind Desane Group Holdings and Inventis 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.