Correlation Between Cint Group and Nordic Waterproofing
Can any of the company-specific risk be diversified away by investing in both Cint Group and Nordic Waterproofing 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 Nordic Waterproofing 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 Nordic Waterproofing Holding, you can compare the effects of market volatilities on Cint Group and Nordic Waterproofing 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 Nordic Waterproofing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Nordic Waterproofing.
Diversification Opportunities for Cint Group and Nordic Waterproofing
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cint and Nordic is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Nordic Waterproofing Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Waterproofing 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 Nordic Waterproofing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Waterproofing has no effect on the direction of Cint Group i.e., Cint Group and Nordic Waterproofing go up and down completely randomly.
Pair Corralation between Cint Group and Nordic Waterproofing
Assuming the 90 days trading horizon Cint Group AB is expected to under-perform the Nordic Waterproofing. In addition to that, Cint Group is 3.39 times more volatile than Nordic Waterproofing Holding. It trades about -0.02 of its total potential returns per unit of risk. Nordic Waterproofing Holding is currently generating about 0.03 per unit of volatility. If you would invest 14,058 in Nordic Waterproofing Holding on August 30, 2024 and sell it today you would earn a total of 3,182 from holding Nordic Waterproofing Holding or generate 22.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Nordic Waterproofing Holding
Performance |
| Timeline |
| Cint Group AB |
| Nordic Waterproofing |
Cint Group and Nordic Waterproofing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Nordic Waterproofing
The main advantage of trading using opposite Cint Group and Nordic Waterproofing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Nordic Waterproofing 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 Nordic Waterproofing will offset losses from the drop in Nordic Waterproofing'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 |
| Nordic Waterproofing vs. Inwido AB | Nordic Waterproofing vs. Byggmax Group AB | Nordic Waterproofing vs. AQ Group AB | Nordic Waterproofing vs. Garo 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |