Correlation Between Pierce Group and Cint Group

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

Diversification Opportunities for Pierce Group and Cint Group

-0.24

Correlation Coefficient

Pierce Group  Cint Group

Very good diversification

The 3 months correlation between Pierce and Cint is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pierce 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 Pierce 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 Pierce 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 Pierce Group i.e., Pierce Group and Cint Group go up and down completely randomly.

Pair Corralation between Pierce Group and Cint Group

Assuming the 90 days trading horizon Pierce Group AB is expected to under-perform the Cint Group. But the stock apears to be less risky and, when comparing its historical volatility, Pierce Group AB is 1.24 times less risky than Cint Group. The stock trades about -0.02 of its potential returns per unit of risk. The Cint Group AB is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  965.00  in Cint Group AB on September 26, 2024 and sell it today you would earn a total of  354.00  from holding Cint Group AB or generate 36.68% return on investment over 90 days.

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

Pierce Group AB  vs.  Cint Group AB

Pierce Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pierce Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Pierce Group is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

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 uncertain basic indicators, Cint Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pierce Group and Cint Group

The main advantage of trading using opposite Pierce Group and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pierce 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 Pierce 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.