Correlation Between Media and Cint Group

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

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

Diversification Opportunities for Media and Cint Group

0.23

Correlation Coefficient

Media  Cint Group

Modest diversification

The 3 months correlation between Media and Cint is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games 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 Media 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 Media and Games 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 Media i.e., Media and Cint Group go up and down completely randomly.

Pair Corralation between Media and Cint Group

Assuming the 90 days trading horizon Media and Games is expected to generate 0.81 times more return on investment than Cint Group. However, Media and Games is 1.23 times less risky than Cint Group. It trades about 0.07 of its potential returns per unit of risk. Cint Group AB is currently generating about -0.01 per unit of risk. If you would invest  1,714  in Media and Games on December 1, 2024 and sell it today you would earn a total of  2,571  from holding Media and Games or generate 150.0% return on investment over 90 days.

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

Media and Games  vs.  Cint Group AB

Media and Games

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Media and Games are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Media may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 Media and Cint Group

The main advantage of trading using opposite Media and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 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 Media and Games 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.