Correlation Between Cinis Fertilizer and Paradox Interactive

Can any of the company-specific risk be diversified away by investing in both Cinis Fertilizer and Paradox Interactive 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 Cinis Fertilizer and Paradox Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Cinis Fertilizer and Paradox Interactive

-0.29

Correlation Coefficient

Cinis Fertilizer  Paradox Interactive

Very good diversification

The 3 months correlation between Cinis and Paradox is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cinis Fertilizer AB and Paradox Interactive AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paradox Interactive and Cinis Fertilizer 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 Cinis Fertilizer AB are associated (or correlated) with Paradox Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paradox Interactive has no effect on the direction of Cinis Fertilizer i.e., Cinis Fertilizer and Paradox Interactive go up and down completely randomly.

Pair Corralation between Cinis Fertilizer and Paradox Interactive

Assuming the 90 days trading horizon Cinis Fertilizer AB is expected to under-perform the Paradox Interactive. In addition to that, Cinis Fertilizer is 3.79 times more volatile than Paradox Interactive AB. It trades about -0.1 of its total potential returns per unit of risk. Paradox Interactive AB is currently generating about -0.01 per unit of volatility. If you would invest  20,171  in Paradox Interactive AB on July 23, 2025 and sell it today you would lose (3,171) from holding Paradox Interactive AB or give up 15.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Cinis Fertilizer AB  vs.  Paradox Interactive AB

Cinis Fertilizer

Risk-Adjusted Performance

Weakest

Over the last 90 days Cinis Fertilizer 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 November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Paradox Interactive

Risk-Adjusted Performance

Weakest

Over the last 90 days Paradox Interactive AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Paradox Interactive is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cinis Fertilizer and Paradox Interactive

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

The idea behind Cinis Fertilizer AB and Paradox Interactive 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.