Correlation Between Cint Group and Bergman Beving
Can any of the company-specific risk be diversified away by investing in both Cint Group and Bergman Beving 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 Bergman Beving 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 Bergman Beving AB, you can compare the effects of market volatilities on Cint Group and Bergman Beving 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 Bergman Beving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Bergman Beving.
Diversification Opportunities for Cint Group and Bergman Beving
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cint and Bergman is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Bergman Beving AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergman Beving AB 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 Bergman Beving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergman Beving AB has no effect on the direction of Cint Group i.e., Cint Group and Bergman Beving go up and down completely randomly.
Pair Corralation between Cint Group and Bergman Beving
Assuming the 90 days trading horizon Cint Group AB is expected to generate 1.26 times more return on investment than Bergman Beving. However, Cint Group is 1.26 times more volatile than Bergman Beving AB. It trades about 0.02 of its potential returns per unit of risk. Bergman Beving AB is currently generating about -0.07 per unit of risk. If you would invest 1,293 in Cint Group AB on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Cint Group AB or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Bergman Beving AB
Performance |
| Timeline |
| Cint Group AB |
| Bergman Beving AB |
Cint Group and Bergman Beving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Bergman Beving
The main advantage of trading using opposite Cint Group and Bergman Beving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Bergman Beving 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 Bergman Beving will offset losses from the drop in Bergman Beving's long position.| Cint Group vs. Kancera AB | Cint Group vs. Terranet AB | Cint Group vs. Divio Technologies AB | Cint Group vs. Cantargia AB |
| Bergman Beving vs. Lagercrantz Group AB | Bergman Beving vs. Addtech AB | Bergman Beving vs. AddLife AB | Bergman Beving vs. Bufab Holding 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |