Correlation Between Cintas and First Foods
Can any of the company-specific risk be diversified away by investing in both Cintas and First Foods 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 First Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cintas and First Foods Group, you can compare the effects of market volatilities on Cintas and First Foods 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 First Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cintas and First Foods.
Diversification Opportunities for Cintas and First Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cintas and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and First Foods Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Foods Group 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 First Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Foods Group has no effect on the direction of Cintas i.e., Cintas and First Foods go up and down completely randomly.
Pair Corralation between Cintas and First Foods
If you would invest 0.02 in First Foods Group on August 30, 2025 and sell it today you would earn a total of 0.00 from holding First Foods Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cintas vs. First Foods Group
Performance |
| Timeline |
| Cintas |
| First Foods Group |
Cintas and First Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cintas and First Foods
The main advantage of trading using opposite Cintas and First Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cintas position performs unexpectedly, First Foods 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 First Foods will offset losses from the drop in First Foods' long position.| Cintas vs. Vir Biotechnology | Cintas vs. Vienna Insurance Group | Cintas vs. Puma Biotechnology | Cintas vs. American Transportation Holdings |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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