Correlation Between Atlas Copco and Cint Group
Can any of the company-specific risk be diversified away by investing in both Atlas Copco 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 Atlas Copco and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Copco AB and Cint Group AB, you can compare the effects of market volatilities on Atlas Copco 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 Atlas Copco with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Copco and Cint Group.
Diversification Opportunities for Atlas Copco and Cint Group
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlas and Cint is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Copco 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 Atlas Copco 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 Atlas Copco 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 Atlas Copco i.e., Atlas Copco and Cint Group go up and down completely randomly.
Pair Corralation between Atlas Copco and Cint Group
Assuming the 90 days trading horizon Atlas Copco AB is expected to under-perform the Cint Group. But the stock apears to be less risky and, when comparing its historical volatility, Atlas Copco AB is 2.66 times less risky than Cint Group. The stock trades about -0.05 of its potential returns per unit of risk. The Cint Group AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,465 in Cint Group AB on August 31, 2024 and sell it today you would lose (212.00) from holding Cint Group AB or give up 14.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Copco AB vs. Cint Group AB
Performance |
| Timeline |
| Atlas Copco AB |
| Cint Group AB |
Atlas Copco and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Copco and Cint Group
The main advantage of trading using opposite Atlas Copco and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Copco 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.| Atlas Copco vs. AB SKF | Atlas Copco vs. Sandvik AB | Atlas Copco vs. Husqvarna AB | Atlas Copco vs. Skanska AB |
| Cint Group vs. Sinch AB | Cint Group vs. Stillfront Group AB | Cint Group vs. Truecaller AB | Cint Group vs. BICO 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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