Correlation Between Stillfront Group and Cint Group
Can any of the company-specific risk be diversified away by investing in both Stillfront 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 Stillfront 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 Stillfront Group AB and Cint Group AB, you can compare the effects of market volatilities on Stillfront 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 Stillfront Group with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and Cint Group.
Diversification Opportunities for Stillfront Group and Cint Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stillfront and Cint is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront 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 Stillfront 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 Stillfront 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 Stillfront Group i.e., Stillfront Group and Cint Group go up and down completely randomly.
Pair Corralation between Stillfront Group and Cint Group
Assuming the 90 days horizon Stillfront Group AB is expected to under-perform the Cint Group. But the stock apears to be less risky and, when comparing its historical volatility, Stillfront Group AB is 1.63 times less risky than Cint Group. The stock trades about -0.04 of its potential returns per unit of risk. The Cint Group AB is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,170 in Cint Group AB on August 25, 2024 and sell it today you would lose (3,960) from holding Cint Group AB or give up 76.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stillfront Group AB vs. Cint Group AB
Performance |
| Timeline |
| Stillfront Group |
| Cint Group AB |
Stillfront Group and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillfront Group and Cint Group
The main advantage of trading using opposite Stillfront Group and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront 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.| Stillfront Group vs. Flexion Mobile PLC | Stillfront Group vs. iZafe Group AB | Stillfront Group vs. KABE Group AB | Stillfront Group vs. IAR Systems Group |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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