Correlation Between Viad Corp and Cintas
Can any of the company-specific risk be diversified away by investing in both Viad Corp 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 Viad Corp and Cintas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viad Corp and Cintas, you can compare the effects of market volatilities on Viad Corp 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 Viad Corp with a short position of Cintas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viad Corp and Cintas.
Diversification Opportunities for Viad Corp and Cintas
Good diversification
The 3 months correlation between Viad and Cintas is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Viad Corp and Cintas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cintas and Viad Corp 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 Viad 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 Viad Corp i.e., Viad Corp and Cintas go up and down completely randomly.
Pair Corralation between Viad Corp and Cintas
Considering the 90-day investment horizon Viad Corp is expected to under-perform the Cintas. In addition to that, Viad Corp is 1.23 times more volatile than Cintas. It trades about -0.23 of its total potential returns per unit of risk. Cintas is currently generating about 0.36 per unit of volatility. If you would invest 18,209 in Cintas on November 3, 2024 and sell it today you would earn a total of 1,848 from holding Cintas or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Viad Corp vs. Cintas
Performance |
| Timeline |
| Viad Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Cintas |
Viad Corp and Cintas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viad Corp and Cintas
The main advantage of trading using opposite Viad Corp and Cintas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viad Corp 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.| Viad Corp vs. Cass Information Systems | Viad Corp vs. Teleperformance SE | Viad Corp vs. Network 1 Technologies | Viad Corp vs. BrightView Holdings |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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