Correlation Between Cint Group and Arctic Blue
Can any of the company-specific risk be diversified away by investing in both Cint Group and Arctic Blue 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 Arctic Blue 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 Arctic Blue Beverages, you can compare the effects of market volatilities on Cint Group and Arctic Blue 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 Arctic Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Arctic Blue.
Diversification Opportunities for Cint Group and Arctic Blue
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cint and Arctic is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Arctic Blue Beverages in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Blue Beverages 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 Arctic Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Blue Beverages has no effect on the direction of Cint Group i.e., Cint Group and Arctic Blue go up and down completely randomly.
Pair Corralation between Cint Group and Arctic Blue
Assuming the 90 days trading horizon Cint Group AB is expected to generate 0.78 times more return on investment than Arctic Blue. However, Cint Group AB is 1.28 times less risky than Arctic Blue. It trades about -0.02 of its potential returns per unit of risk. Arctic Blue Beverages is currently generating about -0.02 per unit of risk. If you would invest 4,856 in Cint Group AB on August 27, 2024 and sell it today you would lose (3,646) from holding Cint Group AB or give up 75.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Arctic Blue Beverages
Performance |
| Timeline |
| Cint Group AB |
| Arctic Blue Beverages |
Cint Group and Arctic Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Arctic Blue
The main advantage of trading using opposite Cint Group and Arctic Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Arctic Blue 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 Arctic Blue will offset losses from the drop in Arctic Blue'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 |
| Arctic Blue vs. Cint Group AB | Arctic Blue vs. Nordic Waterproofing Holding | Arctic Blue vs. Inwido AB | Arctic Blue vs. KABE 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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