Correlation Between Cintas and AAC TECHNOLOGHLDGADR

Can any of the company-specific risk be diversified away by investing in both Cintas and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cintas and AAC TECHNOLOGHLDGADR, you can compare the effects of market volatilities on Cintas and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cintas and AAC TECHNOLOGHLDGADR.

Diversification Opportunities for Cintas and AAC TECHNOLOGHLDGADR

0.0

Correlation Coefficient

Cintas  AAC TECHNOLOGHLDGADR

Pay attention - limited upside

The 3 months correlation between Cintas and AAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and AAC TECHNOLOGHLDGADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC TECHNOLOGHLDGADR has no effect on the direction of Cintas i.e., Cintas and AAC TECHNOLOGHLDGADR go up and down completely randomly.

Pair Corralation between Cintas and AAC TECHNOLOGHLDGADR

If you would invest  447.00  in AAC TECHNOLOGHLDGADR on May 11, 2025 and sell it today you would earn a total of  11.00  from holding AAC TECHNOLOGHLDGADR or generate 2.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.52%
Values	Daily Returns

Cintas  vs.  AAC TECHNOLOGHLDGADR

Cintas

Risk-Adjusted Performance

Weakest

Over the last 90 days Cintas has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Cintas is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

AAC TECHNOLOGHLDGADR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AAC TECHNOLOGHLDGADR are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, AAC TECHNOLOGHLDGADR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cintas and AAC TECHNOLOGHLDGADR

The main advantage of trading using opposite Cintas and AAC TECHNOLOGHLDGADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cintas position performs unexpectedly, AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR will offset losses from the drop in AAC TECHNOLOGHLDGADR's long position.

The idea behind Cintas and AAC TECHNOLOGHLDGADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.