Correlation Between Cint Group and Viva Wine
Can any of the company-specific risk be diversified away by investing in both Cint Group and Viva Wine 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 Viva Wine 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 Viva Wine Group, you can compare the effects of market volatilities on Cint Group and Viva Wine 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 Viva Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Viva Wine.
Diversification Opportunities for Cint Group and Viva Wine
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cint and Viva is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Viva Wine Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Wine 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 Viva Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Wine Group has no effect on the direction of Cint Group i.e., Cint Group and Viva Wine go up and down completely randomly.
Pair Corralation between Cint Group and Viva Wine
Assuming the 90 days trading horizon Cint Group AB is expected to under-perform the Viva Wine. In addition to that, Cint Group is 1.36 times more volatile than Viva Wine Group. It trades about -0.06 of its total potential returns per unit of risk. Viva Wine Group is currently generating about -0.03 per unit of volatility. If you would invest 4,110 in Viva Wine Group on August 26, 2024 and sell it today you would lose (50.00) from holding Viva Wine Group or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cint Group AB vs. Viva Wine Group
Performance |
| Timeline |
| Cint Group AB |
| Viva Wine Group |
Cint Group and Viva Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cint Group and Viva Wine
The main advantage of trading using opposite Cint Group and Viva Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Viva Wine 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 Viva Wine will offset losses from the drop in Viva Wine'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 |
| Viva Wine vs. Cint Group AB | Viva Wine vs. Nordic Waterproofing Holding | Viva Wine vs. RVRC Holding AB | Viva Wine vs. Synsam 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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