Correlation Between Cint Group and Enad Global
Can any of the company-specific risk be diversified away by investing in both Cint Group and Enad Global 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 Enad Global 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 Enad Global 7, you can compare the effects of market volatilities on Cint Group and Enad Global 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 Enad Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Enad Global.
Diversification Opportunities for Cint Group and Enad Global
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cint and Enad is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Enad Global 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enad Global 7 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 Enad Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enad Global 7 has no effect on the direction of Cint Group i.e., Cint Group and Enad Global go up and down completely randomly.
Pair Corralation between Cint Group and Enad Global
Assuming the 90 days trading horizon Cint Group AB is expected to under-perform the Enad Global. In addition to that, Cint Group is 1.86 times more volatile than Enad Global 7. It trades about -0.3 of its total potential returns per unit of risk. Enad Global 7 is currently generating about -0.29 per unit of volatility. If you would invest 1,664 in Enad Global 7 on November 3, 2024 and sell it today you would lose (301.00) from holding Enad Global 7 or give up 18.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Enad Global 7
Performance |
| Timeline |
| Cint Group AB |
| Enad Global 7 |
Cint Group and Enad Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Enad Global
The main advantage of trading using opposite Cint Group and Enad Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Enad Global 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 Enad Global will offset losses from the drop in Enad Global'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 |
| Enad Global vs. Stillfront Group AB | Enad Global vs. Embracer Group AB | Enad Global vs. G5 Entertainment publ | Enad Global vs. Sinch 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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