Correlation Between CTT Systems and Cint Group
Can any of the company-specific risk be diversified away by investing in both CTT Systems 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 CTT Systems and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTT Systems AB and Cint Group AB, you can compare the effects of market volatilities on CTT Systems 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 CTT Systems with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTT Systems and Cint Group.
Diversification Opportunities for CTT Systems and Cint Group
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTT and Cint is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CTT Systems AB 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 CTT Systems 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 CTT Systems AB 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 CTT Systems i.e., CTT Systems and Cint Group go up and down completely randomly.
Pair Corralation between CTT Systems and Cint Group
Assuming the 90 days trading horizon CTT Systems AB is expected to generate 0.81 times more return on investment than Cint Group. However, CTT Systems AB is 1.23 times less risky than Cint Group. It trades about 0.2 of its potential returns per unit of risk. Cint Group AB is currently generating about 0.02 per unit of risk. If you would invest 24,200 in CTT Systems AB on September 4, 2024 and sell it today you would earn a total of 2,300 from holding CTT Systems AB or generate 9.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTT Systems AB vs. Cint Group AB
Performance |
| Timeline |
| CTT Systems AB |
| Cint Group AB |
CTT Systems and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTT Systems and Cint Group
The main advantage of trading using opposite CTT Systems and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTT Systems 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.| CTT Systems vs. Enea AB | CTT Systems vs. BTS Group AB | CTT Systems vs. CellaVision AB | CTT Systems vs. Biotage AB |
| Cint Group vs. Kancera AB | Cint Group vs. Terranet AB | Cint Group vs. Divio Technologies AB | Cint Group vs. Cantargia 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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