Correlation Between Cint Group and Bonesupport Holding
Can any of the company-specific risk be diversified away by investing in both Cint Group and Bonesupport Holding 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 Bonesupport Holding 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 Bonesupport Holding AB, you can compare the effects of market volatilities on Cint Group and Bonesupport Holding 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 Bonesupport Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Bonesupport Holding.
Diversification Opportunities for Cint Group and Bonesupport Holding
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cint and Bonesupport is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Bonesupport Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonesupport Holding 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 Bonesupport Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonesupport Holding has no effect on the direction of Cint Group i.e., Cint Group and Bonesupport Holding go up and down completely randomly.
Pair Corralation between Cint Group and Bonesupport Holding
Assuming the 90 days trading horizon Cint Group is expected to generate 2.1 times less return on investment than Bonesupport Holding. In addition to that, Cint Group is 1.52 times more volatile than Bonesupport Holding AB. It trades about 0.04 of its total potential returns per unit of risk. Bonesupport Holding AB is currently generating about 0.14 per unit of volatility. If you would invest 12,600 in Bonesupport Holding AB on August 29, 2024 and sell it today you would earn a total of 24,580 from holding Bonesupport Holding AB or generate 195.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Bonesupport Holding AB
Performance |
| Timeline |
| Cint Group AB |
| Bonesupport Holding |
Cint Group and Bonesupport Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Bonesupport Holding
The main advantage of trading using opposite Cint Group and Bonesupport Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Bonesupport Holding 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 Bonesupport Holding will offset losses from the drop in Bonesupport Holding'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 |
| Bonesupport Holding vs. BioArctic AB | Bonesupport Holding vs. Camurus AB | Bonesupport Holding vs. Xvivo Perfusion AB | Bonesupport Holding vs. Surgical Science Sweden |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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