Correlation Between Invisio Communications and Qleanair Holding

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

Diversification Opportunities for Invisio Communications and Qleanair Holding

0.15

Correlation Coefficient

Invisio Communications  Qleanair Holding

Average diversification

The 3 months correlation between Invisio and Qleanair is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Invisio Communications AB and Qleanair Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qleanair Holding 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 Qleanair Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qleanair Holding has no effect on the direction of Invisio Communications i.e., Invisio Communications and Qleanair Holding go up and down completely randomly.

Pair Corralation between Invisio Communications and Qleanair Holding

Assuming the 90 days trading horizon Invisio Communications is expected to generate 14.29 times less return on investment than Qleanair Holding. But when comparing it to its historical volatility, Invisio Communications AB is 1.31 times less risky than Qleanair Holding. It trades about 0.02 of its potential returns per unit of risk. Qleanair Holding AB is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,400  in Qleanair Holding AB on April 21, 2025 and sell it today you would earn a total of  610.00  from holding Qleanair Holding AB or generate 43.57% 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.  Qleanair Holding AB

Invisio Communications

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Invisio Communications AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Invisio Communications is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Qleanair Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Qleanair Holding AB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Qleanair Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Invisio Communications and Qleanair Holding

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

The idea behind Invisio Communications AB and Qleanair Holding 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.