Correlation Between Cint Group and Swedencare Publ
Can any of the company-specific risk be diversified away by investing in both Cint Group and Swedencare Publ 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 Swedencare Publ 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 Swedencare publ AB, you can compare the effects of market volatilities on Cint Group and Swedencare Publ 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 Swedencare Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Swedencare Publ.
Diversification Opportunities for Cint Group and Swedencare Publ
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cint and Swedencare is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Swedencare publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedencare publ 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 Swedencare Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedencare publ AB has no effect on the direction of Cint Group i.e., Cint Group and Swedencare Publ go up and down completely randomly.
Pair Corralation between Cint Group and Swedencare Publ
Assuming the 90 days trading horizon Cint Group AB is expected to under-perform the Swedencare Publ. In addition to that, Cint Group is 2.05 times more volatile than Swedencare publ AB. It trades about -0.26 of its total potential returns per unit of risk. Swedencare publ AB is currently generating about -0.11 per unit of volatility. If you would invest 4,824 in Swedencare publ AB on November 30, 2024 and sell it today you would lose (574.00) from holding Swedencare publ AB or give up 11.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Swedencare publ AB
Performance |
| Timeline |
| Cint Group AB |
| Swedencare publ AB |
Cint Group and Swedencare Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Swedencare Publ
The main advantage of trading using opposite Cint Group and Swedencare Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Swedencare Publ 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 Swedencare Publ will offset losses from the drop in Swedencare Publ'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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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