Correlation Between Xvivo Perfusion and Image Systems

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

By analyzing existing cross correlation between Xvivo Perfusion AB and Image Systems AB, you can compare the effects of market volatilities on Xvivo Perfusion and Image Systems 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 Xvivo Perfusion with a short position of Image Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xvivo Perfusion and Image Systems.

Diversification Opportunities for Xvivo Perfusion and Image Systems

0.13

Correlation Coefficient

Xvivo Perfusion  Image Systems

Average diversification

The 3 months correlation between Xvivo and Image is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Xvivo Perfusion AB and Image Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Systems AB and Xvivo Perfusion 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 Xvivo Perfusion AB are associated (or correlated) with Image Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Systems AB has no effect on the direction of Xvivo Perfusion i.e., Xvivo Perfusion and Image Systems go up and down completely randomly.

Pair Corralation between Xvivo Perfusion and Image Systems

Assuming the 90 days trading horizon Xvivo Perfusion AB is expected to under-perform the Image Systems. But the stock apears to be less risky and, when comparing its historical volatility, Xvivo Perfusion AB is 2.11 times less risky than Image Systems. The stock trades about -0.24 of its potential returns per unit of risk. The Image Systems AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  283.00  in Image Systems AB on December 30, 2024 and sell it today you would lose (33.00) from holding Image Systems AB or give up 11.66% of portfolio value over 90 days.

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

Xvivo Perfusion AB  vs.  Image Systems AB

Xvivo Perfusion AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xvivo Perfusion 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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Image Systems AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Image Systems AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Image Systems is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Xvivo Perfusion and Image Systems

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

The idea behind Xvivo Perfusion AB and Image Systems 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.