Correlation Between Cint Group and Stillfront Group
Can any of the company-specific risk be diversified away by investing in both Cint Group and Stillfront 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 Stillfront 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 Stillfront Group AB, you can compare the effects of market volatilities on Cint Group and Stillfront 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 Stillfront Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Stillfront Group.
Diversification Opportunities for Cint Group and Stillfront Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cint and Stillfront is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Stillfront Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillfront Group 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 Stillfront Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillfront Group has no effect on the direction of Cint Group i.e., Cint Group and Stillfront Group go up and down completely randomly.
Pair Corralation between Cint Group and Stillfront Group
Assuming the 90 days trading horizon Cint Group AB is expected to generate 1.63 times more return on investment than Stillfront Group. However, Cint Group is 1.63 times more volatile than Stillfront Group AB. It trades about -0.02 of its potential returns per unit of risk. Stillfront Group AB is currently generating about -0.04 per unit of risk. If you would invest 5,170 in Cint Group AB on August 25, 2024 and sell it today you would lose (3,960) from holding Cint Group AB or give up 76.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Stillfront Group AB
Performance |
| Timeline |
| Cint Group AB |
| Stillfront Group |
Cint Group and Stillfront Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Stillfront Group
The main advantage of trading using opposite Cint Group and Stillfront Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Stillfront 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 Stillfront Group will offset losses from the drop in Stillfront Group's long position.| Cint Group vs. Spectrumone publ AB | Cint Group vs. Media and Games | Cint Group vs. Enersize Oy | Cint Group vs. Cantargia AB |
| Stillfront Group vs. Flexion Mobile PLC | Stillfront Group vs. iZafe Group AB | Stillfront Group vs. KABE Group AB | Stillfront Group vs. IAR Systems Group |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |