Correlation Between Carrier Global and Cintas
Can any of the company-specific risk be diversified away by investing in both Carrier Global 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 Carrier Global and Cintas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrier Global Corp and Cintas, you can compare the effects of market volatilities on Carrier Global 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 Carrier Global with a short position of Cintas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrier Global and Cintas.
Diversification Opportunities for Carrier Global and Cintas
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carrier and Cintas is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Carrier Global Corp and Cintas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cintas and Carrier Global 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 Carrier Global 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 Carrier Global i.e., Carrier Global and Cintas go up and down completely randomly.
Pair Corralation between Carrier Global and Cintas
Given the investment horizon of 90 days Carrier Global Corp is expected to under-perform the Cintas. In addition to that, Carrier Global is 1.59 times more volatile than Cintas. It trades about -0.15 of its total potential returns per unit of risk. Cintas is currently generating about -0.18 per unit of volatility. If you would invest 20,953 in Cintas on August 29, 2025 and sell it today you would lose (2,586) from holding Cintas or give up 12.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carrier Global Corp vs. Cintas
Performance |
| Timeline |
| Carrier Global Corp |
| Cintas |
Carrier Global and Cintas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carrier Global and Cintas
The main advantage of trading using opposite Carrier Global and Cintas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrier Global 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.| Carrier Global vs. InterContinental Hotels Group | Carrier Global vs. Candlewood Hotel | Carrier Global vs. Hoteles City Express | Carrier Global vs. Ainsworth Game Technology |
| Cintas vs. Everus Construction Group | Cintas vs. Energold Drilling Corp | Cintas vs. Takamatsu Construction Group | Cintas vs. China Tontine Wines |
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 CEOs Directory module to screen CEOs from public companies around the world.
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