Correlation Between CTT Systems and SinterCast
Can any of the company-specific risk be diversified away by investing in both CTT Systems and SinterCast 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 SinterCast 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 SinterCast AB, you can compare the effects of market volatilities on CTT Systems and SinterCast 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 SinterCast. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTT Systems and SinterCast.
Diversification Opportunities for CTT Systems and SinterCast
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTT and SinterCast is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CTT Systems AB and SinterCast AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinterCast 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 SinterCast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinterCast AB has no effect on the direction of CTT Systems i.e., CTT Systems and SinterCast go up and down completely randomly.
Pair Corralation between CTT Systems and SinterCast
Assuming the 90 days trading horizon CTT Systems AB is expected to generate 1.09 times more return on investment than SinterCast. However, CTT Systems is 1.09 times more volatile than SinterCast AB. It trades about 0.03 of its potential returns per unit of risk. SinterCast AB is currently generating about 0.01 per unit of risk. If you would invest 23,352 in CTT Systems AB on October 11, 2024 and sell it today you would earn a total of 4,048 from holding CTT Systems AB or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTT Systems AB vs. SinterCast AB
Performance |
| Timeline |
| CTT Systems AB |
| SinterCast AB |
CTT Systems and SinterCast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTT Systems and SinterCast
The main advantage of trading using opposite CTT Systems and SinterCast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTT Systems position performs unexpectedly, SinterCast 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 SinterCast will offset losses from the drop in SinterCast's long position.| CTT Systems vs. Enea AB | CTT Systems vs. BTS Group AB | CTT Systems vs. CellaVision AB | CTT Systems vs. Biotage AB |
| SinterCast vs. CTT Systems AB | SinterCast vs. Studsvik AB | SinterCast vs. Proact IT Group | SinterCast vs. Rottneros 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |