Correlation Between Absolent Group and CTT Systems
Can any of the company-specific risk be diversified away by investing in both Absolent Group 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 Absolent Group and CTT Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Absolent Group AB and CTT Systems AB, you can compare the effects of market volatilities on Absolent Group 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 Absolent Group with a short position of CTT Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absolent Group and CTT Systems.
Diversification Opportunities for Absolent Group and CTT Systems
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Absolent and CTT is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Absolent Group 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 Absolent 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 Absolent Group 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 Absolent Group i.e., Absolent Group and CTT Systems go up and down completely randomly.
Pair Corralation between Absolent Group and CTT Systems
Assuming the 90 days trading horizon Absolent Group AB is expected to generate 0.85 times more return on investment than CTT Systems. However, Absolent Group AB is 1.18 times less risky than CTT Systems. It trades about -0.09 of its potential returns per unit of risk. CTT Systems AB is currently generating about -0.1 per unit of risk. If you would invest 25,900 in Absolent Group AB on August 30, 2025 and sell it today you would lose (4,600) from holding Absolent Group AB or give up 17.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Absolent Group AB vs. CTT Systems AB
Performance |
| Timeline |
| Absolent Group AB |
| CTT Systems AB |
Absolent Group and CTT Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absolent Group and CTT Systems
The main advantage of trading using opposite Absolent Group and CTT Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absolent Group 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.| Absolent Group vs. SaveLend Group AB | Absolent Group vs. JLT Mobile Computers | Absolent Group vs. Vitec Software Group | Absolent Group vs. COOR Service Management |
| CTT Systems vs. SaveLend Group AB | CTT Systems vs. Upsales Technology AB | CTT Systems vs. Nordic Iron Ore | CTT Systems vs. Havsfrun Investment AB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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