Correlation Between RediShred Capital and Cintas
Can any of the company-specific risk be diversified away by investing in both RediShred Capital and Cintas 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 RediShred Capital and Cintas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RediShred Capital Corp and Cintas, you can compare the effects of market volatilities on RediShred Capital and Cintas 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 RediShred Capital with a short position of Cintas. Check out your portfolio center. Please also check ongoing floating volatility patterns of RediShred Capital and Cintas.
Diversification Opportunities for RediShred Capital and Cintas
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between RediShred and Cintas is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding RediShred Capital Corp and Cintas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cintas and RediShred Capital 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 RediShred Capital Corp are associated (or correlated) with Cintas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cintas has no effect on the direction of RediShred Capital i.e., RediShred Capital and Cintas go up and down completely randomly.
Pair Corralation between RediShred Capital and Cintas
Assuming the 90 days horizon RediShred Capital is expected to generate 253.77 times less return on investment than Cintas. But when comparing it to its historical volatility, RediShred Capital Corp is 2.26 times less risky than Cintas. It trades about 0.0 of its potential returns per unit of risk. Cintas is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 18,712 in Cintas on October 23, 2024 and sell it today you would earn a total of 1,119 from holding Cintas or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
RediShred Capital Corp vs. Cintas
Performance |
| Timeline |
| RediShred Capital Corp |
| Cintas |
RediShred Capital and Cintas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RediShred Capital and Cintas
The main advantage of trading using opposite RediShred Capital and Cintas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RediShred Capital position performs unexpectedly, Cintas 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 Cintas will offset losses from the drop in Cintas' long position.| RediShred Capital vs. SMX Public Limited | RediShred Capital vs. System1 | RediShred Capital vs. Lichen China Limited | RediShred Capital vs. Eastman Kodak Co |
| Cintas vs. ABM Industries Incorporated | Cintas vs. Copart Inc | Cintas vs. Dolby Laboratories | Cintas vs. Relx PLC ADR |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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