Correlation Between Cint Group and Sleep Cycle
Can any of the company-specific risk be diversified away by investing in both Cint Group and Sleep Cycle 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 Sleep Cycle 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 Sleep Cycle AB, you can compare the effects of market volatilities on Cint Group and Sleep Cycle 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 Sleep Cycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Sleep Cycle.
Diversification Opportunities for Cint Group and Sleep Cycle
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cint and Sleep is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Sleep Cycle AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sleep Cycle 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 Sleep Cycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sleep Cycle AB has no effect on the direction of Cint Group i.e., Cint Group and Sleep Cycle go up and down completely randomly.
Pair Corralation between Cint Group and Sleep Cycle
Assuming the 90 days trading horizon Cint Group AB is expected to generate 1.6 times more return on investment than Sleep Cycle. However, Cint Group is 1.6 times more volatile than Sleep Cycle AB. It trades about 0.06 of its potential returns per unit of risk. Sleep Cycle AB is currently generating about -0.53 per unit of risk. If you would invest 1,290 in Cint Group AB on September 25, 2024 and sell it today you would earn a total of 29.00 from holding Cint Group AB or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Sleep Cycle AB
Performance |
| Timeline |
| Cint Group AB |
| Sleep Cycle AB |
Cint Group and Sleep Cycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Sleep Cycle
The main advantage of trading using opposite Cint Group and Sleep Cycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Sleep Cycle 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 Sleep Cycle will offset losses from the drop in Sleep Cycle's long position.| Cint Group vs. FormPipe Software AB | Cint Group vs. MOBA Network publ | Cint Group vs. Exsitec Holding AB | Cint Group vs. Novotek AB |
| Sleep Cycle vs. FormPipe Software AB | Sleep Cycle vs. Cint Group AB | Sleep Cycle vs. Lime Technologies AB | Sleep Cycle vs. Micro Systemation 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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