Correlation Between Cintas and Expeditors International

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

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

Diversification Opportunities for Cintas and Expeditors International

0.3

Correlation Coefficient

Cintas  Expeditors International

Weak diversification

The 3 months correlation between Cintas and Expeditors is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cintas and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors 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 Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Cintas i.e., Cintas and Expeditors International go up and down completely randomly.

Pair Corralation between Cintas and Expeditors International

Given the investment horizon of 90 days Cintas is expected to generate 0.61 times more return on investment than Expeditors International. However, Cintas is 1.65 times less risky than Expeditors International. It trades about 0.08 of its potential returns per unit of risk. Expeditors International of is currently generating about 0.04 per unit of risk. If you would invest  21,143  in Cintas on May 4, 2025 and sell it today you would earn a total of  1,007  from holding Cintas or generate 4.76% return on investment over 90 days.

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

Cintas  vs.  Expeditors International of

Cintas

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cintas are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Cintas is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Expeditors International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Expeditors International of are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Expeditors International is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cintas and Expeditors International

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

The idea behind Cintas and Expeditors International of 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.