Correlation Between Civeo Corp and CBIZ

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

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

Diversification Opportunities for Civeo Corp and CBIZ

0.67

Correlation Coefficient

Civeo Corp  CBIZ

Poor diversification

The 3 months correlation between Civeo and CBIZ is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Civeo Corp and CBIZ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBIZ Inc and Civeo Corp 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 Civeo 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 Civeo Corp i.e., Civeo Corp and CBIZ go up and down completely randomly.

Pair Corralation between Civeo Corp and CBIZ

Given the investment horizon of 90 days Civeo Corp is expected to generate 2.08 times more return on investment than CBIZ. However, Civeo Corp is 2.08 times more volatile than CBIZ Inc. It trades about 0.04 of its potential returns per unit of risk. CBIZ Inc is currently generating about -0.08 per unit of risk. If you would invest  2,200  in Civeo Corp on December 27, 2024 and sell it today you would earn a total of  98.50  from holding Civeo Corp or generate 4.48% return on investment over 90 days.

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

Civeo Corp  vs.  CBIZ Inc

Civeo Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Civeo Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Civeo Corp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CBIZ Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CBIZ Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Civeo Corp and CBIZ

The main advantage of trading using opposite Civeo Corp and CBIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civeo Corp 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.

The idea behind Civeo Corp and CBIZ Inc 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.