Correlation Between Cint Group and Checkin Group
Can any of the company-specific risk be diversified away by investing in both Cint Group and Checkin 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 Cint Group and Checkin Group 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 Checkin Group AB, you can compare the effects of market volatilities on Cint Group and Checkin 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 Cint Group with a short position of Checkin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Checkin Group.
Diversification Opportunities for Cint Group and Checkin Group
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cint and Checkin is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Checkin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkin Group 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 Checkin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkin Group AB has no effect on the direction of Cint Group i.e., Cint Group and Checkin Group go up and down completely randomly.
Pair Corralation between Cint Group and Checkin Group
Assuming the 90 days trading horizon Cint Group is expected to generate 6.43 times less return on investment than Checkin Group. But when comparing it to its historical volatility, Cint Group AB is 1.57 times less risky than Checkin Group. It trades about 0.06 of its potential returns per unit of risk. Checkin Group AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,430 in Checkin Group AB on August 29, 2024 and sell it today you would earn a total of 315.00 from holding Checkin Group AB or generate 22.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Checkin Group AB
Performance |
| Timeline |
| Cint Group AB |
| Checkin Group AB |
Cint Group and Checkin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Checkin Group
The main advantage of trading using opposite Cint Group and Checkin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Checkin 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 Checkin Group will offset losses from the drop in Checkin Group's long position.The idea behind Cint Group AB and Checkin Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Checkin Group vs. AstraZeneca PLC | Checkin Group vs. Investor AB ser | Checkin Group vs. Investor AB ser | Checkin Group vs. Atlas Copco 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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