Correlation Between CBIZ and Mader Group
Can any of the company-specific risk be diversified away by investing in both CBIZ and Mader 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 CBIZ and Mader Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBIZ Inc and Mader Group Limited, you can compare the effects of market volatilities on CBIZ and Mader 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 CBIZ with a short position of Mader Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBIZ and Mader Group.
Diversification Opportunities for CBIZ and Mader Group
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CBIZ and Mader is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding CBIZ Inc and Mader Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mader Group Limited and CBIZ 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 CBIZ Inc are associated (or correlated) with Mader Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mader Group Limited has no effect on the direction of CBIZ i.e., CBIZ and Mader Group go up and down completely randomly.
Pair Corralation between CBIZ and Mader Group
Considering the 90-day investment horizon CBIZ is expected to generate 2.31 times less return on investment than Mader Group. But when comparing it to its historical volatility, CBIZ Inc is 1.33 times less risky than Mader Group. It trades about 0.09 of its potential returns per unit of risk. Mader Group Limited is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 357.00 in Mader Group Limited on November 2, 2024 and sell it today you would earn a total of 43.00 from holding Mader Group Limited or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBIZ Inc vs. Mader Group Limited
Performance |
| Timeline |
| CBIZ Inc |
| Mader Group Limited |
CBIZ and Mader Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBIZ and Mader Group
The main advantage of trading using opposite CBIZ and Mader Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBIZ position performs unexpectedly, Mader 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 Mader Group will offset losses from the drop in Mader Group's long position.The idea behind CBIZ Inc and Mader Group Limited 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.| Mader Group vs. Skillful Craftsman Education | Mader Group vs. Catalyst Metals Limited | Mader Group vs. Yuexiu Transport Infrastructure | Mader Group vs. Electrovaya Common Shares |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |