Correlation Between CBIZ and Performant Financial
Can any of the company-specific risk be diversified away by investing in both CBIZ and Performant Financial 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 Performant Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBIZ Inc and Performant Financial, you can compare the effects of market volatilities on CBIZ and Performant Financial 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 Performant Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBIZ and Performant Financial.
Diversification Opportunities for CBIZ and Performant Financial
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBIZ and Performant is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CBIZ Inc and Performant Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performant Financial 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 Performant Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performant Financial has no effect on the direction of CBIZ i.e., CBIZ and Performant Financial go up and down completely randomly.
Pair Corralation between CBIZ and Performant Financial
Considering the 90-day investment horizon CBIZ Inc is expected to generate 0.47 times more return on investment than Performant Financial. However, CBIZ Inc is 2.12 times less risky than Performant Financial. It trades about 0.08 of its potential returns per unit of risk. Performant Financial is currently generating about 0.02 per unit of risk. If you would invest 4,639 in CBIZ Inc on October 21, 2024 and sell it today you would earn a total of 3,811 from holding CBIZ Inc or generate 82.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.17% |
| Values | Daily Returns |
CBIZ Inc vs. Performant Financial
Performance |
| Timeline |
| CBIZ Inc |
| Performant Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CBIZ and Performant Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBIZ and Performant Financial
The main advantage of trading using opposite CBIZ and Performant Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBIZ position performs unexpectedly, Performant Financial 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 Performant Financial will offset losses from the drop in Performant Financial's long position.The idea behind CBIZ Inc and Performant Financial 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.| Performant Financial vs. Network 1 Technologies | Performant Financial vs. Rentokil Initial PLC | Performant Financial vs. Wilhelmina | Performant Financial vs. Mader Group Limited |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |