Correlation Between Swedencare Publ and Cint Group
Can any of the company-specific risk be diversified away by investing in both Swedencare Publ 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 Swedencare Publ and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedencare publ AB and Cint Group AB, you can compare the effects of market volatilities on Swedencare Publ 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 Swedencare Publ with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedencare Publ and Cint Group.
Diversification Opportunities for Swedencare Publ and Cint Group
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swedencare and Cint is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Swedencare publ 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 Swedencare Publ 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 Swedencare publ 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 Swedencare Publ i.e., Swedencare Publ and Cint Group go up and down completely randomly.
Pair Corralation between Swedencare Publ and Cint Group
Assuming the 90 days trading horizon Swedencare publ AB is expected to generate 0.37 times more return on investment than Cint Group. However, Swedencare publ AB is 2.74 times less risky than Cint Group. It trades about 0.33 of its potential returns per unit of risk. Cint Group AB is currently generating about -0.04 per unit of risk. If you would invest 4,642 in Swedencare publ AB on September 3, 2024 and sell it today you would earn a total of 318.00 from holding Swedencare publ AB or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedencare publ AB vs. Cint Group AB
Performance |
| Timeline |
| Swedencare publ AB |
| Cint Group AB |
Swedencare Publ and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedencare Publ and Cint Group
The main advantage of trading using opposite Swedencare Publ and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedencare Publ 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.| Swedencare Publ vs. Svenska Handelsbanken AB | Swedencare Publ vs. Soder Sportfiske AB | Swedencare Publ vs. Nexam Chemical Holding | Swedencare Publ vs. SaveLend Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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