Correlation Between Cint Group and Sinch AB
Can any of the company-specific risk be diversified away by investing in both Cint Group and Sinch AB 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 Sinch AB 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 Sinch AB, you can compare the effects of market volatilities on Cint Group and Sinch AB 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 Sinch AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Sinch AB.
Diversification Opportunities for Cint Group and Sinch AB
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cint and Sinch is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Sinch AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinch 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 Sinch AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinch AB has no effect on the direction of Cint Group i.e., Cint Group and Sinch AB go up and down completely randomly.
Pair Corralation between Cint Group and Sinch AB
Assuming the 90 days trading horizon Cint Group AB is expected to generate 0.96 times more return on investment than Sinch AB. However, Cint Group AB is 1.04 times less risky than Sinch AB. It trades about 0.07 of its potential returns per unit of risk. Sinch AB is currently generating about 0.03 per unit of risk. If you would invest 701.00 in Cint Group AB on August 25, 2024 and sell it today you would earn a total of 509.00 from holding Cint Group AB or generate 72.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Sinch AB
Performance |
| Timeline |
| Cint Group AB |
| Sinch AB |
Cint Group and Sinch AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Sinch AB
The main advantage of trading using opposite Cint Group and Sinch AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Sinch AB 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 Sinch AB will offset losses from the drop in Sinch AB'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 |
| Sinch AB vs. Lidds AB | Sinch AB vs. Serstech AB | Sinch AB vs. Transtema Group AB | Sinch AB vs. Enorama Pharma 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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