Correlation Between KABE Group and Cint Group
Can any of the company-specific risk be diversified away by investing in both KABE Group 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 KABE Group and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KABE Group AB and Cint Group AB, you can compare the effects of market volatilities on KABE Group 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 KABE Group with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Cint Group.
Diversification Opportunities for KABE Group and Cint Group
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between KABE and Cint is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group 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 KABE Group 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 KABE Group 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 KABE Group i.e., KABE Group and Cint Group go up and down completely randomly.
Pair Corralation between KABE Group and Cint Group
Assuming the 90 days trading horizon KABE Group AB is expected to under-perform the Cint Group. But the stock apears to be less risky and, when comparing its historical volatility, KABE Group AB is 1.14 times less risky than Cint Group. The stock trades about -0.14 of its potential returns per unit of risk. The Cint Group AB is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,280 in Cint Group AB on August 30, 2024 and sell it today you would lose (29.00) from holding Cint Group AB or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
KABE Group AB vs. Cint Group AB
Performance |
| Timeline |
| KABE Group AB |
| Cint Group AB |
KABE Group and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Cint Group
The main advantage of trading using opposite KABE Group and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group 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.| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
| Cint Group vs. Sinch AB | Cint Group vs. Stillfront Group AB | Cint Group vs. Truecaller AB | Cint Group vs. Storskogen 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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