Correlation Between CiT and Cadre Holdings
Can any of the company-specific risk be diversified away by investing in both CiT and Cadre 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 CiT and Cadre Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CiT Inc and Cadre Holdings, you can compare the effects of market volatilities on CiT and Cadre 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 CiT with a short position of Cadre Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CiT and Cadre Holdings.
Diversification Opportunities for CiT and Cadre Holdings
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CiT and Cadre is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Cadre Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadre Holdings and CiT 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 CiT Inc are associated (or correlated) with Cadre Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadre Holdings has no effect on the direction of CiT i.e., CiT and Cadre Holdings go up and down completely randomly.
Pair Corralation between CiT and Cadre Holdings
Given the investment horizon of 90 days CiT Inc is expected to under-perform the Cadre Holdings. But the stock apears to be less risky and, when comparing its historical volatility, CiT Inc is 1.01 times less risky than Cadre Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Cadre Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,233 in Cadre Holdings on March 17, 2025 and sell it today you would earn a total of 207.00 from holding Cadre Holdings or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CiT Inc vs. Cadre Holdings
Performance |
| Timeline |
| CiT Inc |
| Cadre Holdings |
CiT and Cadre Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CiT and Cadre Holdings
The main advantage of trading using opposite CiT and Cadre Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CiT position performs unexpectedly, Cadre 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 Cadre Holdings will offset losses from the drop in Cadre Holdings' long position.| CiT vs. Global Blue Group | CiT vs. EverCommerce | CiT vs. CSG Systems International | CiT vs. Consensus Cloud Solutions |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| 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 | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |