Correlation Between Cintas and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Cintas and ExlService Holdings 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 ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cintas and ExlService Holdings, you can compare the effects of market volatilities on Cintas and ExlService Holdings 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 ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cintas and ExlService Holdings.
Diversification Opportunities for Cintas and ExlService Holdings
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cintas and ExlService is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings 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 ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of Cintas i.e., Cintas and ExlService Holdings go up and down completely randomly.
Pair Corralation between Cintas and ExlService Holdings
Given the investment horizon of 90 days Cintas is expected to generate 0.66 times more return on investment than ExlService Holdings. However, Cintas is 1.52 times less risky than ExlService Holdings. It trades about 0.13 of its potential returns per unit of risk. ExlService Holdings is currently generating about -0.02 per unit of risk. If you would invest 50,675 in Cintas on January 18, 2024 and sell it today you would earn a total of 16,176 from holding Cintas or generate 31.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cintas vs. ExlService Holdings
Performance |
| Timeline |
| Cintas |
| ExlService Holdings |
Cintas and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cintas and ExlService Holdings
The main advantage of trading using opposite Cintas and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cintas position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.| Cintas vs. Quanex Building Products | Cintas vs. Janus International Group | Cintas vs. Apogee Enterprises | Cintas vs. Gibraltar Industries |
| ExlService Holdings vs. Formula Systems 1985 | ExlService Holdings vs. CSP Inc | ExlService Holdings vs. Nayax | ExlService Holdings vs. The Hackett Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |