Correlation Between Troax Group and Cint Group
Can any of the company-specific risk be diversified away by investing in both Troax 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 Troax 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 Troax Group AB and Cint Group AB, you can compare the effects of market volatilities on Troax 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 Troax Group with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Troax Group and Cint Group.
Diversification Opportunities for Troax Group and Cint Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Troax and Cint is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Troax 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 Troax 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 Troax 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 Troax Group i.e., Troax Group and Cint Group go up and down completely randomly.
Pair Corralation between Troax Group and Cint Group
Assuming the 90 days trading horizon Troax Group AB is expected to under-perform the Cint Group. But the stock apears to be less risky and, when comparing its historical volatility, Troax Group AB is 2.2 times less risky than Cint Group. The stock trades about -0.02 of its potential returns per unit of risk. The Cint Group AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,186 in Cint Group AB on September 3, 2024 and sell it today you would earn a total of 67.00 from holding Cint Group AB or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Troax Group AB vs. Cint Group AB
Performance |
| Timeline |
| Troax Group AB |
| Cint Group AB |
Troax Group and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Troax Group and Cint Group
The main advantage of trading using opposite Troax Group and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Troax 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.| Troax Group vs. Bufab Holding AB | Troax Group vs. Thule Group AB | Troax Group vs. Beijer Ref AB | Troax Group vs. Lifco 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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