Correlation Between Rentokil Initial and First Data
Can any of the company-specific risk be diversified away by investing in both Rentokil Initial and First Data 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 Rentokil Initial and First Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rentokil Initial plc and First Data, you can compare the effects of market volatilities on Rentokil Initial and First Data 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 Rentokil Initial with a short position of First Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rentokil Initial and First Data.
Diversification Opportunities for Rentokil Initial and First Data
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rentokil and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rentokil Initial plc and First Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Data and Rentokil Initial 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 Rentokil Initial plc are associated (or correlated) with First Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Data has no effect on the direction of Rentokil Initial i.e., Rentokil Initial and First Data go up and down completely randomly.
Pair Corralation between Rentokil Initial and First Data
If you would invest 464.00 in Rentokil Initial plc on January 20, 2024 and sell it today you would earn a total of 98.00 from holding Rentokil Initial plc or generate 21.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rentokil Initial plc vs. First Data
Performance |
| Timeline |
| Rentokil Initial plc |
| First Data |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rentokil Initial and First Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rentokil Initial and First Data
The main advantage of trading using opposite Rentokil Initial and First Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rentokil Initial position performs unexpectedly, First Data 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 Data will offset losses from the drop in First Data's long position.| Rentokil Initial vs. Maximus | Rentokil Initial vs. CBIZ Inc | Rentokil Initial vs. First Advantage Corp | Rentokil Initial vs. Network 1 Technologies |
| First Data vs. Bloomin Brands | First Data vs. Philip Morris International | First Data vs. Diageo PLC ADR | First Data vs. Compania Cervecerias Unidas |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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