Correlation Between Viva Wine and Cint Group
Can any of the company-specific risk be diversified away by investing in both Viva Wine 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 Viva Wine and Cint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viva Wine Group and Cint Group AB, you can compare the effects of market volatilities on Viva Wine 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 Viva Wine with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viva Wine and Cint Group.
Diversification Opportunities for Viva Wine and Cint Group
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Viva and Cint is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Viva Wine Group 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 Viva Wine 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 Viva Wine Group 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 Viva Wine i.e., Viva Wine and Cint Group go up and down completely randomly.
Pair Corralation between Viva Wine and Cint Group
Assuming the 90 days trading horizon Viva Wine Group is expected to generate 0.33 times more return on investment than Cint Group. However, Viva Wine Group is 3.08 times less risky than Cint Group. It trades about 0.0 of its potential returns per unit of risk. Cint Group AB is currently generating about -0.02 per unit of risk. If you would invest 4,118 in Viva Wine Group on August 30, 2024 and sell it today you would lose (188.00) from holding Viva Wine Group or give up 4.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viva Wine Group vs. Cint Group AB
Performance |
| Timeline |
| Viva Wine Group |
| Cint Group AB |
Viva Wine and Cint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viva Wine and Cint Group
The main advantage of trading using opposite Viva Wine and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viva Wine 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.| Viva Wine vs. Cint Group AB | Viva Wine vs. Nordic Waterproofing Holding | Viva Wine vs. RVRC Holding AB | Viva Wine vs. Inwido 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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