Correlation Between Surgical Science and Cint Group
Can any of the company-specific risk be diversified away by investing in both Surgical Science 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 Surgical Science and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surgical Science Sweden and Cint Group AB, you can compare the effects of market volatilities on Surgical Science 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 Surgical Science with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Cint Group.
Diversification Opportunities for Surgical Science and Cint Group
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Surgical and Cint is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden 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 Surgical Science 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 Surgical Science Sweden 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 Surgical Science i.e., Surgical Science and Cint Group go up and down completely randomly.
Pair Corralation between Surgical Science and Cint Group
Assuming the 90 days trading horizon Surgical Science is expected to generate 2.42 times less return on investment than Cint Group. But when comparing it to its historical volatility, Surgical Science Sweden is 1.29 times less risky than Cint Group. It trades about 0.04 of its potential returns per unit of risk. Cint Group AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 701.00 in Cint Group AB on August 25, 2024 and sell it today you would earn a total of 509.00 from holding Cint Group AB or generate 72.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Surgical Science Sweden vs. Cint Group AB
Performance |
| Timeline |
| Surgical Science Sweden |
| Cint Group AB |
Surgical Science and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Cint Group
The main advantage of trading using opposite Surgical Science and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science 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.| Surgical Science vs. AVTECH Sweden AB | Surgical Science vs. K2A Knaust Andersson | Surgical Science vs. Dlaboratory Sweden AB | Surgical Science vs. eEducation Albert AB |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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