Correlation Between First Foods and Cintas

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

By analyzing existing cross correlation between First Foods Group and Cintas, you can compare the effects of market volatilities on First Foods and Cintas 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 First Foods with a short position of Cintas. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Foods and Cintas.

Diversification Opportunities for First Foods and Cintas

0.0

Correlation Coefficient

First Foods  Cintas

Pay attention - limited upside

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

Pair Corralation between First Foods and Cintas

Given the investment horizon of 90 days First Foods Group is expected to under-perform the Cintas. In addition to that, First Foods is 6.32 times more volatile than Cintas. It trades about -0.05 of its total potential returns per unit of risk. Cintas is currently generating about 0.04 per unit of volatility. If you would invest  14,819  in Cintas on September 13, 2025 and sell it today you would earn a total of  3,934  from holding Cintas or generate 26.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.6%
Values	Daily Returns

First Foods Group  vs.  Cintas

First Foods Group

Risk-Adjusted Performance

Weakest

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

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 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.

Pair Trading with First Foods and Cintas

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

The idea behind First Foods Group and Cintas 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.