Correlation Between Cint Group and Thunderful Group
Can any of the company-specific risk be diversified away by investing in both Cint Group and Thunderful 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 Thunderful 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 Thunderful Group AB, you can compare the effects of market volatilities on Cint Group and Thunderful 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 Thunderful Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Thunderful Group.
Diversification Opportunities for Cint Group and Thunderful Group
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cint and Thunderful is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Thunderful Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunderful 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 Thunderful Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunderful Group has no effect on the direction of Cint Group i.e., Cint Group and Thunderful Group go up and down completely randomly.
Pair Corralation between Cint Group and Thunderful Group
Assuming the 90 days trading horizon Cint Group AB is expected to under-perform the Thunderful Group. In addition to that, Cint Group is 1.55 times more volatile than Thunderful Group AB. It trades about -0.3 of its total potential returns per unit of risk. Thunderful Group AB is currently generating about 0.04 per unit of volatility. If you would invest 71.00 in Thunderful Group AB on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Thunderful Group AB or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Thunderful Group AB
Performance |
| Timeline |
| Cint Group AB |
| Thunderful Group |
Cint Group and Thunderful Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Thunderful Group
The main advantage of trading using opposite Cint Group and Thunderful Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Thunderful 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 Thunderful Group will offset losses from the drop in Thunderful Group'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 |
| Thunderful Group vs. Stillfront Group AB | Thunderful Group vs. Embracer Group AB | Thunderful Group vs. Enad Global 7 | Thunderful Group vs. Kambi Group PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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