Correlation Between Cintas and WALMART
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By analyzing existing cross correlation between Cintas and WALMART INC 3625, you can compare the effects of market volatilities on Cintas and WALMART 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 WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cintas and WALMART.
Diversification Opportunities for Cintas and WALMART
Weak diversification
The 3 months correlation between Cintas and WALMART is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and WALMART INC 3625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 3625 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 WALMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALMART INC 3625 has no effect on the direction of Cintas i.e., Cintas and WALMART go up and down completely randomly.
Pair Corralation between Cintas and WALMART
Given the investment horizon of 90 days Cintas is expected to generate 0.76 times more return on investment than WALMART. However, Cintas is 1.32 times less risky than WALMART. It trades about 0.2 of its potential returns per unit of risk. WALMART INC 3625 is currently generating about 0.14 per unit of risk. If you would invest 18,677 in Cintas on November 23, 2024 and sell it today you would earn a total of 1,766 from holding Cintas or generate 9.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 85.0% |
Values | Daily Returns |
Cintas vs. WALMART INC 3625
Performance |
Timeline |
Cintas |
WALMART INC 3625 |
Cintas and WALMART Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cintas and WALMART
The main advantage of trading using opposite Cintas and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cintas position performs unexpectedly, WALMART 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 WALMART will offset losses from the drop in WALMART's long position.Cintas vs. ABM Industries Incorporated | ||
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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