Correlation Between Inwido AB and Cint Group
Can any of the company-specific risk be diversified away by investing in both Inwido AB 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 Inwido AB and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inwido AB and Cint Group AB, you can compare the effects of market volatilities on Inwido AB 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 Inwido AB with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inwido AB and Cint Group.
Diversification Opportunities for Inwido AB and Cint Group
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inwido and Cint is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Inwido 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 Inwido AB 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 Inwido 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 Inwido AB i.e., Inwido AB and Cint Group go up and down completely randomly.
Pair Corralation between Inwido AB and Cint Group
Assuming the 90 days trading horizon Inwido AB is expected to generate 0.39 times more return on investment than Cint Group. However, Inwido AB is 2.58 times less risky than Cint Group. It trades about 0.07 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 9,670 in Inwido AB on August 30, 2024 and sell it today you would earn a total of 8,700 from holding Inwido AB or generate 89.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inwido AB vs. Cint Group AB
Performance |
| Timeline |
| Inwido AB |
| Cint Group AB |
Inwido AB and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inwido AB and Cint Group
The main advantage of trading using opposite Inwido AB and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inwido AB 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.| Inwido AB vs. Troax Group AB | Inwido AB vs. NIBE Industrier AB | Inwido AB vs. Hexatronic Group AB | Inwido AB vs. Bufab Holding 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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