Correlation Between Suburban Propane and Cadiz
Can any of the company-specific risk be diversified away by investing in both Suburban Propane and Cadiz 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 Suburban Propane and Cadiz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and Cadiz Inc, you can compare the effects of market volatilities on Suburban Propane and Cadiz 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 Suburban Propane with a short position of Cadiz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and Cadiz.
Diversification Opportunities for Suburban Propane and Cadiz
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suburban and Cadiz is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners and Cadiz Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadiz Inc and Suburban Propane 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 Suburban Propane Partners are associated (or correlated) with Cadiz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadiz Inc has no effect on the direction of Suburban Propane i.e., Suburban Propane and Cadiz go up and down completely randomly.
Pair Corralation between Suburban Propane and Cadiz
Considering the 90-day investment horizon Suburban Propane is expected to generate 6.77 times less return on investment than Cadiz. But when comparing it to its historical volatility, Suburban Propane Partners is 3.84 times less risky than Cadiz. It trades about 0.1 of its potential returns per unit of risk. Cadiz Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Cadiz Inc on September 8, 2025 and sell it today you would earn a total of 201.00 from holding Cadiz Inc or generate 54.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suburban Propane Partners vs. Cadiz Inc
Performance |
| Timeline |
| Suburban Propane Partners |
| Cadiz Inc |
Suburban Propane and Cadiz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suburban Propane and Cadiz
The main advantage of trading using opposite Suburban Propane and Cadiz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane position performs unexpectedly, Cadiz 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 Cadiz will offset losses from the drop in Cadiz's long position.| Suburban Propane vs. ZhongAn Online P | Suburban Propane vs. Topsports International Holdings | Suburban Propane vs. Quality Online Education | Suburban Propane vs. China Tontine Wines |
| Cadiz vs. Education Management Corp | Cadiz vs. Bright Scholar Education | Cadiz vs. TeraForce Technology | Cadiz vs. DXC Technology Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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