Correlation Between Linc AB and Cint Group

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

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

Diversification Opportunities for Linc AB and Cint Group

0.76

Correlation Coefficient

Linc AB  Cint Group

Poor diversification

The 3 months correlation between Linc and Cint is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Linc 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 Linc AB 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 Linc 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 Linc AB i.e., Linc AB and Cint Group go up and down completely randomly.

Pair Corralation between Linc AB and Cint Group

Assuming the 90 days trading horizon Linc AB is expected to generate 0.54 times more return on investment than Cint Group. However, Linc AB is 1.84 times less risky than Cint Group. It trades about 0.15 of its potential returns per unit of risk. Cint Group AB is currently generating about -0.03 per unit of risk. If you would invest  6,514  in Linc AB on April 24, 2025 and sell it today you would earn a total of  936.00  from holding Linc AB or generate 14.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Linc AB  vs.  Cint Group AB

Linc AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Linc AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Linc AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Linc AB and Cint Group

The main advantage of trading using opposite Linc AB and Cint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linc AB 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 Linc 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.