Correlation Between Cintas and Opus Magnum
Can any of the company-specific risk be diversified away by investing in both Cintas and Opus Magnum 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 Opus Magnum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cintas and Opus Magnum Ameris, you can compare the effects of market volatilities on Cintas and Opus Magnum 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 Opus Magnum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cintas and Opus Magnum.
Diversification Opportunities for Cintas and Opus Magnum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cintas and Opus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and Opus Magnum Ameris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opus Magnum Ameris 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 Opus Magnum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opus Magnum Ameris has no effect on the direction of Cintas i.e., Cintas and Opus Magnum go up and down completely randomly.
Pair Corralation between Cintas and Opus Magnum
If you would invest 20,719 in Cintas on September 3, 2024 and sell it today you would earn a total of 1,860 from holding Cintas or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cintas vs. Opus Magnum Ameris
Performance |
| Timeline |
| Cintas |
| Opus Magnum Ameris |
Cintas and Opus Magnum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cintas and Opus Magnum
The main advantage of trading using opposite Cintas and Opus Magnum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cintas position performs unexpectedly, Opus Magnum 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 Opus Magnum will offset losses from the drop in Opus Magnum's long position.| Cintas vs. ABM Industries Incorporated | Cintas vs. Copart Inc | Cintas vs. Dolby Laboratories | Cintas vs. Relx PLC ADR |
| Opus Magnum vs. Cintas | Opus Magnum vs. Thomson Reuters Corp | Opus Magnum vs. Global Payments | Opus Magnum vs. RB Global |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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