Correlation Between BrightView Holdings and Cintas
Can any of the company-specific risk be diversified away by investing in both BrightView Holdings and Cintas 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 BrightView Holdings and Cintas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BrightView Holdings and Cintas, you can compare the effects of market volatilities on BrightView Holdings and Cintas 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 BrightView Holdings with a short position of Cintas. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrightView Holdings and Cintas.
Diversification Opportunities for BrightView Holdings and Cintas
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between BrightView and Cintas is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding BrightView Holdings and Cintas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cintas and BrightView Holdings 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 BrightView Holdings are associated (or correlated) with Cintas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cintas has no effect on the direction of BrightView Holdings i.e., BrightView Holdings and Cintas go up and down completely randomly.
Pair Corralation between BrightView Holdings and Cintas
Allowing for the 90-day total investment horizon BrightView Holdings is expected to generate 19.69 times less return on investment than Cintas. In addition to that, BrightView Holdings is 1.0 times more volatile than Cintas. It trades about 0.0 of its total potential returns per unit of risk. Cintas is currently generating about 0.09 per unit of volatility. If you would invest 19,637 in Cintas on January 18, 2025 and sell it today you would earn a total of 939.00 from holding Cintas or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BrightView Holdings vs. Cintas
Performance |
| Timeline |
| BrightView Holdings |
| Cintas |
BrightView Holdings and Cintas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrightView Holdings and Cintas
The main advantage of trading using opposite BrightView Holdings and Cintas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrightView Holdings position performs unexpectedly, Cintas 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 Cintas will offset losses from the drop in Cintas' long position.| BrightView Holdings vs. Network 1 Technologies | BrightView Holdings vs. Civeo Corp | BrightView Holdings vs. Maximus | BrightView Holdings vs. CBIZ Inc |
| Cintas vs. ABM Industries Incorporated | Cintas vs. Copart Inc | Cintas vs. Dolby Laboratories | Cintas vs. Relx PLC ADR |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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