Correlation Between Acast AB and Cint Group
Can any of the company-specific risk be diversified away by investing in both Acast AB and Cint Group 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 Acast AB and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acast AB and Cint Group AB, you can compare the effects of market volatilities on Acast AB and Cint Group 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 Acast AB with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acast AB and Cint Group.
Diversification Opportunities for Acast AB and Cint Group
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Acast and Cint is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Acast AB and Cint Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cint Group AB and Acast 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 Acast AB are associated (or correlated) with Cint Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cint Group AB has no effect on the direction of Acast AB i.e., Acast AB and Cint Group go up and down completely randomly.
Pair Corralation between Acast AB and Cint Group
Assuming the 90 days trading horizon Acast AB is expected to under-perform the Cint Group. But the stock apears to be less risky and, when comparing its historical volatility, Acast AB is 1.09 times less risky than Cint Group. The stock trades about -0.04 of its potential returns per unit of risk. The Cint Group AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,237 in Cint Group AB on August 29, 2024 and sell it today you would earn a total of 33.00 from holding Cint Group AB or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acast AB vs. Cint Group AB
Performance |
| Timeline |
| Acast AB |
| Cint Group AB |
Acast AB and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acast AB and Cint Group
The main advantage of trading using opposite Acast AB and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acast AB position performs unexpectedly, Cint Group 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 Cint Group will offset losses from the drop in Cint Group's long position.| Acast AB vs. Cint Group AB | Acast AB vs. Storytel AB | Acast AB vs. Stillfront Group AB | Acast AB vs. Thunderful Group AB |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |