Correlation Between Cint Group and Viva Wine

Can any of the company-specific risk be diversified away by investing in both Cint Group and Viva Wine 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 Cint Group and Viva Wine into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cint Group AB and Viva Wine Group, you can compare the effects of market volatilities on Cint Group and Viva Wine 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 Cint Group with a short position of Viva Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Viva Wine.

Diversification Opportunities for Cint Group and Viva Wine

-0.73

Correlation Coefficient

Cint Group  Viva Wine

Pay attention - limited upside

The 3 months correlation between Cint and Viva is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Viva Wine Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Wine Group and Cint 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 Cint Group AB are associated (or correlated) with Viva Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Wine Group has no effect on the direction of Cint Group i.e., Cint Group and Viva Wine go up and down completely randomly.

Pair Corralation between Cint Group and Viva Wine

Assuming the 90 days trading horizon Cint Group AB is expected to generate 2.46 times more return on investment than Viva Wine. However, Cint Group is 2.46 times more volatile than Viva Wine Group. It trades about 0.03 of its potential returns per unit of risk. Viva Wine Group is currently generating about 0.01 per unit of risk. If you would invest  1,115  in Cint Group AB on October 2, 2024 and sell it today you would earn a total of  151.00  from holding Cint Group AB or generate 13.54% return on investment over 90 days.

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

Cint Group AB  vs.  Viva Wine Group

Cint Group AB

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cint Group AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Cint Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Viva Wine Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Viva Wine Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cint Group and Viva Wine

The main advantage of trading using opposite Cint Group and Viva Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Viva Wine 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 Viva Wine will offset losses from the drop in Viva Wine's long position.

The idea behind Cint Group AB and Viva Wine Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.