Correlation Between Cint Group and CTT Systems
Can any of the company-specific risk be diversified away by investing in both Cint Group and CTT Systems 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 CTT Systems 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 CTT Systems AB, you can compare the effects of market volatilities on Cint Group and CTT Systems 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 CTT Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and CTT Systems.
Diversification Opportunities for Cint Group and CTT Systems
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cint and CTT is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and CTT Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTT Systems 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 CTT Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTT Systems AB has no effect on the direction of Cint Group i.e., Cint Group and CTT Systems go up and down completely randomly.
Pair Corralation between Cint Group and CTT Systems
Assuming the 90 days trading horizon Cint Group is expected to generate 7.26 times less return on investment than CTT Systems. In addition to that, Cint Group is 1.23 times more volatile than CTT Systems AB. It trades about 0.02 of its total potential returns per unit of risk. CTT Systems AB is currently generating about 0.2 per unit of volatility. If you would invest 24,200 in CTT Systems AB on September 4, 2024 and sell it today you would earn a total of 2,300 from holding CTT Systems AB or generate 9.5% 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. CTT Systems AB
Performance |
| Timeline |
| Cint Group AB |
| CTT Systems AB |
Cint Group and CTT Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and CTT Systems
The main advantage of trading using opposite Cint Group and CTT Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, CTT Systems 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 CTT Systems will offset losses from the drop in CTT Systems' long position.| Cint Group vs. Kancera AB | Cint Group vs. Terranet AB | Cint Group vs. Divio Technologies AB | Cint Group vs. Cantargia AB |
| CTT Systems vs. Enea AB | CTT Systems vs. BTS Group AB | CTT Systems vs. CellaVision AB | CTT Systems vs. Biotage 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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