Correlation Between DLH Holdings and CBIZ
Can any of the company-specific risk be diversified away by investing in both DLH Holdings and CBIZ 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 DLH Holdings and CBIZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DLH Holdings Corp and CBIZ Inc, you can compare the effects of market volatilities on DLH Holdings and CBIZ 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 DLH Holdings with a short position of CBIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of DLH Holdings and CBIZ.
Diversification Opportunities for DLH Holdings and CBIZ
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DLH and CBIZ is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding DLH Holdings Corp and CBIZ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBIZ Inc and DLH Holdings 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 DLH Holdings Corp are associated (or correlated) with CBIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBIZ Inc has no effect on the direction of DLH Holdings i.e., DLH Holdings and CBIZ go up and down completely randomly.
Pair Corralation between DLH Holdings and CBIZ
Given the investment horizon of 90 days DLH Holdings Corp is expected to under-perform the CBIZ. In addition to that, DLH Holdings is 1.63 times more volatile than CBIZ Inc. It trades about -0.6 of its total potential returns per unit of risk. CBIZ Inc is currently generating about 0.02 per unit of volatility. If you would invest 7,782 in CBIZ Inc on January 25, 2024 and sell it today you would earn a total of 25.00 from holding CBIZ Inc or generate 0.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DLH Holdings Corp vs. CBIZ Inc
Performance |
Timeline |
DLH Holdings Corp |
CBIZ Inc |
DLH Holdings and CBIZ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DLH Holdings and CBIZ
The main advantage of trading using opposite DLH Holdings and CBIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DLH Holdings position performs unexpectedly, CBIZ 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 CBIZ will offset losses from the drop in CBIZ's long position.DLH Holdings vs. Discount Print USA | DLH Holdings vs. Cass Information Systems | DLH Holdings vs. Maximus | DLH Holdings vs. AZZ Incorporated |
CBIZ vs. BrightView Holdings | CBIZ vs. Maximus | CBIZ vs. First Advantage Corp | CBIZ vs. Cass Information Systems |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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