Correlation Between Cintas and Goliath Resources
Can any of the company-specific risk be diversified away by investing in both Cintas and Goliath Resources 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 Cintas and Goliath Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cintas and Goliath Resources Limited, you can compare the effects of market volatilities on Cintas and Goliath Resources 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 Cintas with a short position of Goliath Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cintas and Goliath Resources.
Diversification Opportunities for Cintas and Goliath Resources
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cintas and Goliath is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and Goliath Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goliath Resources and Cintas 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 Cintas are associated (or correlated) with Goliath Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goliath Resources has no effect on the direction of Cintas i.e., Cintas and Goliath Resources go up and down completely randomly.
Pair Corralation between Cintas and Goliath Resources
Given the investment horizon of 90 days Cintas is expected to generate 0.54 times more return on investment than Goliath Resources. However, Cintas is 1.85 times less risky than Goliath Resources. It trades about 0.26 of its potential returns per unit of risk. Goliath Resources Limited is currently generating about -0.33 per unit of risk. If you would invest 20,822 in Cintas on August 27, 2024 and sell it today you would earn a total of 1,568 from holding Cintas or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cintas vs. Goliath Resources Limited
Performance |
| Timeline |
| Cintas |
| Goliath Resources |
Cintas and Goliath Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cintas and Goliath Resources
The main advantage of trading using opposite Cintas and Goliath Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cintas position performs unexpectedly, Goliath Resources 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 Goliath Resources will offset losses from the drop in Goliath Resources' long position.| Cintas vs. ABM Industries Incorporated | Cintas vs. Copart Inc | Cintas vs. Dolby Laboratories | Cintas vs. Relx PLC ADR |
| Goliath Resources vs. Morningstar Unconstrained Allocation | Goliath Resources vs. High Yield Municipal Fund | Goliath Resources vs. Knife River | Goliath Resources vs. Klckner Co SE |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |