Correlation Between Rugvista Group and Cint Group

Can any of the company-specific risk be diversified away by investing in both Rugvista 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 Rugvista 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 Rugvista Group AB and Cint Group AB, you can compare the effects of market volatilities on Rugvista 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 Rugvista Group with a short position of Cint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rugvista Group and Cint Group.

Diversification Opportunities for Rugvista Group and Cint Group

-0.35

Correlation Coefficient

Rugvista Group  Cint Group

Very good diversification

The 3 months correlation between Rugvista and Cint is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Rugvista 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 Rugvista 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 Rugvista 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 Rugvista Group i.e., Rugvista Group and Cint Group go up and down completely randomly.

Pair Corralation between Rugvista Group and Cint Group

Assuming the 90 days trading horizon Rugvista Group AB is expected to under-perform the Cint Group. But the stock apears to be less risky and, when comparing its historical volatility, Rugvista Group AB is 1.57 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 0.16 of returns per unit of risk over similar time horizon. If you would invest  895.00  in Cint Group AB on September 4, 2024 and sell it today you would earn a total of  405.00  from holding Cint Group AB or generate 45.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Rugvista Group AB  vs.  Cint Group AB

Rugvista Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rugvista Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Cint Group AB

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cint Group AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cint Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rugvista Group and Cint Group

The main advantage of trading using opposite Rugvista Group and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rugvista 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.

The idea behind Rugvista Group AB and Cint Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.