Correlation Between CiT and Cadre Holdings
Can any of the company-specific risk be diversified away by investing in both CiT and Cadre Holdings 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 CiT and Cadre Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CiT Inc and Cadre Holdings, you can compare the effects of market volatilities on CiT and Cadre Holdings 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 CiT with a short position of Cadre Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CiT and Cadre Holdings.
Diversification Opportunities for CiT and Cadre Holdings
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CiT and Cadre is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Cadre Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadre Holdings and CiT 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 CiT Inc are associated (or correlated) with Cadre Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadre Holdings has no effect on the direction of CiT i.e., CiT and Cadre Holdings go up and down completely randomly.
Pair Corralation between CiT and Cadre Holdings
Given the investment horizon of 90 days CiT is expected to generate 2.29 times less return on investment than Cadre Holdings. In addition to that, CiT is 1.19 times more volatile than Cadre Holdings. It trades about 0.17 of its total potential returns per unit of risk. Cadre Holdings is currently generating about 0.46 per unit of volatility. If you would invest 3,251 in Cadre Holdings on October 23, 2024 and sell it today you would earn a total of 642.00 from holding Cadre Holdings or generate 19.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
CiT Inc vs. Cadre Holdings
Performance |
| Timeline |
| CiT Inc |
| Cadre Holdings |
CiT and Cadre Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CiT and Cadre Holdings
The main advantage of trading using opposite CiT and Cadre Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CiT position performs unexpectedly, Cadre Holdings 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 Cadre Holdings will offset losses from the drop in Cadre Holdings' long position.| CiT vs. Global Blue Group | CiT vs. EverCommerce | CiT vs. CSG Systems International | CiT vs. Consensus Cloud Solutions |
| Cadre Holdings vs. European Wax Center | Cadre Holdings vs. Enfusion | Cadre Holdings vs. CiT Inc | Cadre Holdings vs. Core Main |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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