Correlation Between Cell Impact and CTT Systems

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Can any of the company-specific risk be diversified away by investing in both Cell Impact and CTT Systems 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 Cell Impact and CTT Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cell Impact AB and CTT Systems AB, you can compare the effects of market volatilities on Cell Impact and CTT Systems 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 Cell Impact with a short position of CTT Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cell Impact and CTT Systems.

Diversification Opportunities for Cell Impact and CTT Systems

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cell and CTT is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cell Impact AB and CTT Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTT Systems AB and Cell Impact 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 Cell Impact AB are associated (or correlated) with CTT Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTT Systems AB has no effect on the direction of Cell Impact i.e., Cell Impact and CTT Systems go up and down completely randomly.

Pair Corralation between Cell Impact and CTT Systems

Assuming the 90 days horizon Cell Impact AB is expected to under-perform the CTT Systems. In addition to that, Cell Impact is 4.64 times more volatile than CTT Systems AB. It trades about -0.08 of its total potential returns per unit of risk. CTT Systems AB is currently generating about 0.07 per unit of volatility. If you would invest  19,910  in CTT Systems AB on April 25, 2025 and sell it today you would earn a total of  2,040  from holding CTT Systems AB or generate 10.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Cell Impact AB  vs.  CTT Systems AB

 Performance 
       Timeline  
Cell Impact AB 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cell Impact 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 August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
CTT Systems AB 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CTT Systems AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CTT Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cell Impact and CTT Systems Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cell Impact and CTT Systems

The main advantage of trading using opposite Cell Impact and CTT Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cell Impact position performs unexpectedly, CTT Systems 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 CTT Systems will offset losses from the drop in CTT Systems' long position.
The idea behind Cell Impact AB and CTT Systems 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.
Check out your portfolio center.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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