Correlation Between Catena AB and Invisio Communications

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Can any of the company-specific risk be diversified away by investing in both Catena AB 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 Catena AB and Invisio Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catena AB and Invisio Communications AB, you can compare the effects of market volatilities on Catena AB 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 Catena AB with a short position of Invisio Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena AB and Invisio Communications.

Diversification Opportunities for Catena AB and Invisio Communications

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between Catena and Invisio is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Catena 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 Catena AB 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 Catena 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 Catena AB i.e., Catena AB and Invisio Communications go up and down completely randomly.

Pair Corralation between Catena AB and Invisio Communications

Assuming the 90 days trading horizon Catena AB is expected to generate 0.49 times more return on investment than Invisio Communications. However, Catena AB is 2.05 times less risky than Invisio Communications. It trades about 0.09 of its potential returns per unit of risk. Invisio Communications AB is currently generating about -0.1 per unit of risk. If you would invest  41,557  in Catena AB on September 2, 2025 and sell it today you would earn a total of  2,743  from holding Catena AB or generate 6.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Catena AB  vs.  Invisio Communications AB

 Performance 
       Timeline  
Catena AB 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Catena AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Catena AB may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Invisio Communications 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Catena AB and Invisio Communications Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Catena AB and Invisio Communications

The main advantage of trading using opposite Catena AB and Invisio Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena AB 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 Catena 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.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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