Correlation Between Lyko Group and Cint Group
Can any of the company-specific risk be diversified away by investing in both Lyko 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 Lyko 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 Lyko Group A and Cint Group AB, you can compare the effects of market volatilities on Lyko 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 Lyko Group with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyko Group and Cint Group.
Diversification Opportunities for Lyko Group and Cint Group
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyko and Cint is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lyko Group A 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 Lyko 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 Lyko Group A 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 Lyko Group i.e., Lyko Group and Cint Group go up and down completely randomly.
Pair Corralation between Lyko Group and Cint Group
Assuming the 90 days trading horizon Lyko Group A is expected to under-perform the Cint Group. In addition to that, Lyko Group is 1.06 times more volatile than Cint Group AB. It trades about -0.27 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 1,237 in Cint Group AB on August 29, 2024 and sell it today you would earn a total of 33.00 from holding Cint Group AB or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyko Group A vs. Cint Group AB
Performance |
| Timeline |
| Lyko Group A |
| Cint Group AB |
Lyko Group and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyko Group and Cint Group
The main advantage of trading using opposite Lyko Group and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyko 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.| Lyko Group vs. Mendus AB | Lyko Group vs. JonDeTech Sensors | Lyko Group vs. Nexam Chemical Holding | Lyko Group vs. Lohilo Foods 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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