Correlation Between Cint Group and BIMobject

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

Diversification Opportunities for Cint Group and BIMobject

-0.68

Correlation Coefficient

Cint Group  BIMobject

Excellent diversification

The 3 months correlation between Cint and BIMobject is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cint Group AB and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB 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 BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of Cint Group i.e., Cint Group and BIMobject go up and down completely randomly.

Pair Corralation between Cint Group and BIMobject

Assuming the 90 days trading horizon Cint Group AB is expected to generate 1.02 times more return on investment than BIMobject. However, Cint Group is 1.02 times more volatile than BIMobject AB. It trades about 0.01 of its potential returns per unit of risk. BIMobject AB is currently generating about -0.11 per unit of risk. If you would invest  723.00  in Cint Group AB on April 25, 2025 and sell it today you would lose (3.00) from holding Cint Group AB or give up 0.41% of portfolio value over 90 days.

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

Cint Group AB  vs.  BIMobject AB

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 comparatively stable basic indicators, Cint Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

BIMobject AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days BIMobject 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 primary 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.

Pair Trading with Cint Group and BIMobject

The main advantage of trading using opposite Cint Group and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cint Group position performs unexpectedly, BIMobject 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 BIMobject will offset losses from the drop in BIMobject's long position.

The idea behind Cint Group AB and BIMobject 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.