Correlation Between Cint Group and EEducation Albert
Can any of the company-specific risk be diversified away by investing in both Cint Group and EEducation Albert 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 Cint Group and EEducation Albert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cint Group AB and eEducation Albert AB, you can compare the effects of market volatilities on Cint Group and EEducation Albert 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 Cint Group with a short position of EEducation Albert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and EEducation Albert.
Diversification Opportunities for Cint Group and EEducation Albert
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cint and EEducation is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and eEducation Albert AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eEducation Albert and Cint Group 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 Cint Group AB are associated (or correlated) with EEducation Albert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eEducation Albert has no effect on the direction of Cint Group i.e., Cint Group and EEducation Albert go up and down completely randomly.
Pair Corralation between Cint Group and EEducation Albert
Assuming the 90 days trading horizon Cint Group AB is expected to under-perform the EEducation Albert. In addition to that, Cint Group is 1.82 times more volatile than eEducation Albert AB. It trades about -0.25 of its total potential returns per unit of risk. eEducation Albert AB is currently generating about 0.14 per unit of volatility. If you would invest 281.00 in eEducation Albert AB on November 7, 2024 and sell it today you would earn a total of 23.00 from holding eEducation Albert AB or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Cint Group AB vs. eEducation Albert AB
Performance |
| Timeline |
| Cint Group AB |
| eEducation Albert |
Cint Group and EEducation Albert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and EEducation Albert
The main advantage of trading using opposite Cint Group and EEducation Albert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, EEducation Albert 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 EEducation Albert will offset losses from the drop in EEducation Albert's long position.| Cint Group vs. Sinch AB | Cint Group vs. Stillfront Group AB | Cint Group vs. Truecaller AB | Cint Group vs. BICO Group AB |
| EEducation Albert vs. Greater Than AB | EEducation Albert vs. Cint Group AB | EEducation Albert vs. Acconeer AB | EEducation Albert vs. IAR Systems Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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