Correlation Between Cint Group and Leadtek Research
Can any of the company-specific risk be diversified away by investing in both Cint Group and Leadtek Research 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 Leadtek Research 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 Leadtek Research, you can compare the effects of market volatilities on Cint Group and Leadtek Research 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 Leadtek Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cint Group and Leadtek Research.
Diversification Opportunities for Cint Group and Leadtek Research
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cint and Leadtek is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and Leadtek Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leadtek Research 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 Leadtek Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leadtek Research has no effect on the direction of Cint Group i.e., Cint Group and Leadtek Research go up and down completely randomly.
Pair Corralation between Cint Group and Leadtek Research
Assuming the 90 days trading horizon Cint Group is expected to generate 3.67 times less return on investment than Leadtek Research. In addition to that, Cint Group is 1.05 times more volatile than Leadtek Research. It trades about 0.04 of its total potential returns per unit of risk. Leadtek Research is currently generating about 0.16 per unit of volatility. If you would invest 4,505 in Leadtek Research on April 23, 2025 and sell it today you would earn a total of 1,595 from holding Leadtek Research or generate 35.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.83% |
Values | Daily Returns |
Cint Group AB vs. Leadtek Research
Performance |
Timeline |
Cint Group AB |
Leadtek Research |
Cint Group and Leadtek Research Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cint Group and Leadtek Research
The main advantage of trading using opposite Cint Group and Leadtek Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, Leadtek Research 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 Leadtek Research will offset losses from the drop in Leadtek Research's long position.Cint Group vs. Sinch AB | Cint Group vs. Stillfront Group AB | Cint Group vs. Truecaller AB | Cint Group vs. BICO Group AB |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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