Correlation Between Virco Manufacturing and CBIZ
Can any of the company-specific risk be diversified away by investing in both Virco Manufacturing and CBIZ 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 Virco Manufacturing and CBIZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virco Manufacturing and CBIZ Inc, you can compare the effects of market volatilities on Virco Manufacturing and CBIZ 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 Virco Manufacturing with a short position of CBIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virco Manufacturing and CBIZ.
Diversification Opportunities for Virco Manufacturing and CBIZ
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virco and CBIZ is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Virco Manufacturing and CBIZ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBIZ Inc and Virco Manufacturing 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 Virco Manufacturing are associated (or correlated) with CBIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBIZ Inc has no effect on the direction of Virco Manufacturing i.e., Virco Manufacturing and CBIZ go up and down completely randomly.
Pair Corralation between Virco Manufacturing and CBIZ
Given the investment horizon of 90 days Virco Manufacturing is expected to generate 2.14 times more return on investment than CBIZ. However, Virco Manufacturing is 2.14 times more volatile than CBIZ Inc. It trades about 0.1 of its potential returns per unit of risk. CBIZ Inc is currently generating about 0.07 per unit of risk. If you would invest 690.00 in Virco Manufacturing on August 27, 2024 and sell it today you would earn a total of 893.00 from holding Virco Manufacturing or generate 129.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virco Manufacturing vs. CBIZ Inc
Performance |
| Timeline |
| Virco Manufacturing |
| CBIZ Inc |
Virco Manufacturing and CBIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virco Manufacturing and CBIZ
The main advantage of trading using opposite Virco Manufacturing and CBIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virco Manufacturing position performs unexpectedly, CBIZ 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 CBIZ will offset losses from the drop in CBIZ's long position.| Virco Manufacturing vs. Bassett Furniture Industries | Virco Manufacturing vs. Hooker Furniture | Virco Manufacturing vs. Natuzzi SpA | Virco Manufacturing vs. Flexsteel Industries |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |