Correlation Between Catena Media and Cint Group
Can any of the company-specific risk be diversified away by investing in both Catena Media and Cint 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 Catena Media and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catena Media plc and Cint Group AB, you can compare the effects of market volatilities on Catena Media and Cint 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 Catena Media with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and Cint Group.
Diversification Opportunities for Catena Media and Cint Group
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catena and Cint is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media plc and Cint Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cint Group AB and Catena Media 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 Catena Media plc are associated (or correlated) with Cint Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cint Group AB has no effect on the direction of Catena Media i.e., Catena Media and Cint Group go up and down completely randomly.
Pair Corralation between Catena Media and Cint Group
Assuming the 90 days trading horizon Catena Media plc is expected to under-perform the Cint Group. In addition to that, Catena Media is 1.01 times more volatile than Cint Group AB. It trades about -0.08 of its total potential returns per unit of risk. Cint Group AB is currently generating about 0.04 per unit of volatility. If you would invest 947.00 in Cint Group AB on August 29, 2024 and sell it today you would earn a total of 304.00 from holding Cint Group AB or generate 32.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena Media plc vs. Cint Group AB
Performance |
| Timeline |
| Catena Media plc |
| Cint Group AB |
Catena Media and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena Media and Cint Group
The main advantage of trading using opposite Catena Media and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media position performs unexpectedly, Cint 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 Cint Group will offset losses from the drop in Cint Group's long position.| Catena Media vs. Betsson AB | Catena Media vs. Kambi Group PLC | Catena Media vs. Better Collective | Catena Media vs. Evolution AB |
| Cint Group vs. Sinch AB | Cint Group vs. Stillfront Group AB | Cint Group vs. Truecaller AB | Cint Group vs. BICO Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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