Correlation Between FormPipe Software and Cint Group
Can any of the company-specific risk be diversified away by investing in both FormPipe Software 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 FormPipe Software and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FormPipe Software AB and Cint Group AB, you can compare the effects of market volatilities on FormPipe Software 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 FormPipe Software with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormPipe Software and Cint Group.
Diversification Opportunities for FormPipe Software and Cint Group
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FormPipe and Cint is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding FormPipe Software 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 FormPipe Software 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 FormPipe Software 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 FormPipe Software i.e., FormPipe Software and Cint Group go up and down completely randomly.
Pair Corralation between FormPipe Software and Cint Group
Assuming the 90 days trading horizon FormPipe Software AB is expected to under-perform the Cint Group. In addition to that, FormPipe Software is 1.06 times more volatile than Cint Group AB. It trades about -0.18 of its total potential returns per unit of risk. Cint Group AB is currently generating about 0.06 per unit of volatility. If you would invest 1,290 in Cint Group AB on September 25, 2024 and sell it today you would earn a total of 29.00 from holding Cint Group AB or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FormPipe Software AB vs. Cint Group AB
Performance |
| Timeline |
| FormPipe Software |
| Cint Group AB |
FormPipe Software and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FormPipe Software and Cint Group
The main advantage of trading using opposite FormPipe Software and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormPipe Software 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.| FormPipe Software vs. Lagercrantz Group AB | FormPipe Software vs. Vitec Software Group | FormPipe Software vs. Addnode Group AB | FormPipe Software vs. Inwido AB |
| Cint Group vs. FormPipe Software AB | Cint Group vs. MOBA Network publ | Cint Group vs. Exsitec Holding AB | Cint Group vs. Novotek 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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