Correlation Between Linc AB and Cint Group
Can any of the company-specific risk be diversified away by investing in both Linc 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 Linc 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 Linc AB and Cint Group AB, you can compare the effects of market volatilities on Linc 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 Linc AB with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linc AB and Cint Group.
Diversification Opportunities for Linc AB and Cint Group
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Linc and Cint is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Linc 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 Linc 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 Linc 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 Linc AB i.e., Linc AB and Cint Group go up and down completely randomly.
Pair Corralation between Linc AB and Cint Group
Assuming the 90 days trading horizon Linc AB is expected to generate 3.23 times less return on investment than Cint Group. But when comparing it to its historical volatility, Linc AB is 1.95 times less risky than Cint Group. It trades about 0.03 of its potential returns per unit of risk. Cint Group AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 853.00 in Cint Group AB on September 12, 2024 and sell it today you would earn a total of 585.00 from holding Cint Group AB or generate 68.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linc AB vs. Cint Group AB
Performance |
| Timeline |
| Linc AB |
| Cint Group AB |
Linc AB and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linc AB and Cint Group
The main advantage of trading using opposite Linc AB and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linc 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.The idea behind Linc AB and Cint Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cint Group vs. Spectrumone publ AB | Cint Group vs. Media and Games | Cint Group vs. Enersize Oy | 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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