Correlation Between Cintas and Digi International

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

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

Diversification Opportunities for Cintas and Digi International

-0.69

Correlation Coefficient

Cintas  Digi International

Excellent diversification

The 3 months correlation between Cintas and Digi is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and Digi International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digi International 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 Digi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digi International has no effect on the direction of Cintas i.e., Cintas and Digi International go up and down completely randomly.

Pair Corralation between Cintas and Digi International

Given the investment horizon of 90 days Cintas is expected to generate 0.5 times more return on investment than Digi International. However, Cintas is 2.02 times less risky than Digi International. It trades about 0.08 of its potential returns per unit of risk. Digi International is currently generating about 0.02 per unit of risk. If you would invest  12,275  in Cintas on July 1, 2025 and sell it today you would earn a total of  8,149  from holding Cintas or generate 66.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cintas  vs.  Digi International

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. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Digi International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Digi International are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady forward indicators, Digi International may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Cintas and Digi International

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

The idea behind Cintas and Digi International 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.