Correlation Between Cintas and Carrier Global
Can any of the company-specific risk be diversified away by investing in both Cintas and Carrier Global 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 Carrier Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cintas and Carrier Global Corp, you can compare the effects of market volatilities on Cintas and Carrier Global 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 Carrier Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cintas and Carrier Global.
Diversification Opportunities for Cintas and Carrier Global
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cintas and Carrier is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and Carrier Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrier Global Corp 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 Carrier Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrier Global Corp has no effect on the direction of Cintas i.e., Cintas and Carrier Global go up and down completely randomly.
Pair Corralation between Cintas and Carrier Global
Given the investment horizon of 90 days Cintas is expected to generate 0.63 times more return on investment than Carrier Global. However, Cintas is 1.59 times less risky than Carrier Global. It trades about -0.18 of its potential returns per unit of risk. Carrier Global Corp is currently generating about -0.15 per unit of risk. 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 |
Cintas vs. Carrier Global Corp
Performance |
| Timeline |
| Cintas |
| Carrier Global Corp |
Cintas and Carrier Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cintas and Carrier Global
The main advantage of trading using opposite Cintas and Carrier Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cintas position performs unexpectedly, Carrier Global 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 Carrier Global will offset losses from the drop in Carrier Global's long position.| Cintas vs. Everus Construction Group | Cintas vs. Energold Drilling Corp | Cintas vs. Takamatsu Construction Group | Cintas vs. China Tontine Wines |
| Carrier Global vs. InterContinental Hotels Group | Carrier Global vs. Candlewood Hotel | Carrier Global vs. Hoteles City Express | Carrier Global vs. Ainsworth Game Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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