Correlation Between FormPipe Software and Cint Group

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

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

Diversification Opportunities for FormPipe Software and Cint Group

-0.41

Correlation Coefficient

FormPipe Software  Cint Group

Very good diversification

The 3 months correlation between FormPipe and Cint is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding FormPipe Software 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 FormPipe Software 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 FormPipe Software 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 FormPipe Software i.e., FormPipe Software and Cint Group go up and down completely randomly.

Pair Corralation between FormPipe Software and Cint Group

Assuming the 90 days trading horizon FormPipe Software AB is expected to generate 0.57 times more return on investment than Cint Group. However, FormPipe Software AB is 1.75 times less risky than Cint Group. It trades about 0.09 of its potential returns per unit of risk. Cint Group AB is currently generating about -0.18 per unit of risk. If you would invest  2,290  in FormPipe Software AB on December 30, 2024 and sell it today you would earn a total of  320.00  from holding FormPipe Software AB or generate 13.97% return on investment over 90 days.

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

FormPipe Software AB  vs.  Cint Group AB

FormPipe Software

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FormPipe Software AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, FormPipe Software unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cint Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cint Group AB 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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with FormPipe Software and Cint Group

The main advantage of trading using opposite FormPipe Software and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormPipe Software 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 FormPipe Software 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.