Correlation Between Invisio Communications and LeadDesk Oyj

Can any of the company-specific risk be diversified away by investing in both Invisio Communications and LeadDesk Oyj 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 LeadDesk Oyj 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 LeadDesk Oyj, you can compare the effects of market volatilities on Invisio Communications and LeadDesk Oyj 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 LeadDesk Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invisio Communications and LeadDesk Oyj.

Diversification Opportunities for Invisio Communications and LeadDesk Oyj

0.02

Correlation Coefficient

Invisio Communications  LeadDesk Oyj

Significant diversification

The 3 months correlation between Invisio and LeadDesk is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Invisio Communications AB and LeadDesk Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeadDesk Oyj 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 LeadDesk Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeadDesk Oyj has no effect on the direction of Invisio Communications i.e., Invisio Communications and LeadDesk Oyj go up and down completely randomly.

Pair Corralation between Invisio Communications and LeadDesk Oyj

Assuming the 90 days trading horizon Invisio Communications AB is expected to under-perform the LeadDesk Oyj. In addition to that, Invisio Communications is 1.42 times more volatile than LeadDesk Oyj. It trades about -0.07 of its total potential returns per unit of risk. LeadDesk Oyj is currently generating about 0.14 per unit of volatility. If you would invest  626.00  in LeadDesk Oyj on April 23, 2025 and sell it today you would earn a total of  92.00  from holding LeadDesk Oyj or generate 14.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Invisio Communications AB  vs.  LeadDesk Oyj

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.

LeadDesk Oyj

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LeadDesk Oyj are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical indicators, LeadDesk Oyj demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Invisio Communications and LeadDesk Oyj

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

The idea behind Invisio Communications AB and LeadDesk Oyj 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.