Correlation Between New Bubbleroom and Cint Group
Can any of the company-specific risk be diversified away by investing in both New Bubbleroom 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 New Bubbleroom and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Bubbleroom Sweden and Cint Group AB, you can compare the effects of market volatilities on New Bubbleroom 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 New Bubbleroom with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Bubbleroom and Cint Group.
Diversification Opportunities for New Bubbleroom and Cint Group
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between New and Cint is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding New Bubbleroom Sweden 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 New Bubbleroom 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 New Bubbleroom Sweden 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 New Bubbleroom i.e., New Bubbleroom and Cint Group go up and down completely randomly.
Pair Corralation between New Bubbleroom and Cint Group
Assuming the 90 days trading horizon New Bubbleroom Sweden is expected to generate 1.71 times more return on investment than Cint Group. However, New Bubbleroom is 1.71 times more volatile than Cint Group AB. It trades about 0.03 of its potential returns per unit of risk. Cint Group AB is currently generating about -0.01 per unit of risk. If you would invest 418.00 in New Bubbleroom Sweden on August 30, 2024 and sell it today you would earn a total of 4.00 from holding New Bubbleroom Sweden or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Bubbleroom Sweden vs. Cint Group AB
Performance |
| Timeline |
| New Bubbleroom Sweden |
| Cint Group AB |
New Bubbleroom and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Bubbleroom and Cint Group
The main advantage of trading using opposite New Bubbleroom and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Bubbleroom 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.| New Bubbleroom vs. Footway Group AB | New Bubbleroom vs. Kjell Group AB | New Bubbleroom vs. Bokusgruppen AB | New Bubbleroom vs. Desenio Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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