Correlation Between Conduent and Rimini Street
Can any of the company-specific risk be diversified away by investing in both Conduent and Rimini Street 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 Conduent and Rimini Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conduent and Rimini Street, you can compare the effects of market volatilities on Conduent and Rimini Street 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 Conduent with a short position of Rimini Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conduent and Rimini Street.
Diversification Opportunities for Conduent and Rimini Street
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Conduent and Rimini is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Conduent and Rimini Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimini Street and Conduent 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 Conduent are associated (or correlated) with Rimini Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimini Street has no effect on the direction of Conduent i.e., Conduent and Rimini Street go up and down completely randomly.
Pair Corralation between Conduent and Rimini Street
Given the investment horizon of 90 days Conduent is expected to under-perform the Rimini Street. In addition to that, Conduent is 1.31 times more volatile than Rimini Street. It trades about -0.09 of its total potential returns per unit of risk. Rimini Street is currently generating about -0.03 per unit of volatility. If you would invest 412.00 in Rimini Street on August 20, 2025 and sell it today you would lose (32.00) from holding Rimini Street or give up 7.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Conduent vs. Rimini Street
Performance |
| Timeline |
| Conduent |
| Rimini Street |
Conduent and Rimini Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conduent and Rimini Street
The main advantage of trading using opposite Conduent and Rimini Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conduent position performs unexpectedly, Rimini Street 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 Rimini Street will offset losses from the drop in Rimini Street's long position.| Conduent vs. Xerox Corp | Conduent vs. Siddhi Acquisition Corp | Conduent vs. Frequency Electronics | Conduent vs. Information Services Group |
| Rimini Street vs. Commerce, | Rimini Street vs. CS Disco LLC | Rimini Street vs. eGain | Rimini Street vs. Forge Global Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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