Correlation Between Net Insight and Invisio Communications
Can any of the company-specific risk be diversified away by investing in both Net Insight 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 Net Insight and Invisio Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Net Insight AB and Invisio Communications AB, you can compare the effects of market volatilities on Net Insight 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 Net Insight with a short position of Invisio Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Net Insight and Invisio Communications.
Diversification Opportunities for Net Insight and Invisio Communications
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Net and Invisio is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Net Insight 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 Net Insight 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 Net Insight 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 Net Insight i.e., Net Insight and Invisio Communications go up and down completely randomly.
Pair Corralation between Net Insight and Invisio Communications
Assuming the 90 days trading horizon Net Insight AB is expected to under-perform the Invisio Communications. In addition to that, Net Insight is 1.23 times more volatile than Invisio Communications AB. It trades about -0.18 of its total potential returns per unit of risk. Invisio Communications AB is currently generating about 0.13 per unit of volatility. If you would invest 24,600 in Invisio Communications AB on November 22, 2025 and sell it today you would earn a total of 7,650 from holding Invisio Communications AB or generate 31.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Net Insight AB vs. Invisio Communications AB
Performance |
| Timeline |
| Net Insight AB |
| Invisio Communications |
Net Insight and Invisio Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Net Insight and Invisio Communications
The main advantage of trading using opposite Net Insight and Invisio Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Net Insight 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.| Net Insight vs. Micro Systemation AB | Net Insight vs. Clavister Holding AB | Net Insight vs. Cint Group AB | Net Insight vs. Softronic AB |
| Invisio Communications vs. Bygg Partner i | Invisio Communications vs. SaltX Technology Holding | Invisio Communications vs. Eolus Vind AB | Invisio Communications vs. Train Alliance Sweden |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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