Correlation Between Cardinal Health and Seche Environnement
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and Seche Environnement 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 Cardinal Health and Seche Environnement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Seche Environnement SA, you can compare the effects of market volatilities on Cardinal Health and Seche Environnement 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 Cardinal Health with a short position of Seche Environnement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Seche Environnement.
Diversification Opportunities for Cardinal Health and Seche Environnement
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cardinal and Seche is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Seche Environnement SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seche Environnement and Cardinal Health 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 Cardinal Health are associated (or correlated) with Seche Environnement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seche Environnement has no effect on the direction of Cardinal Health i.e., Cardinal Health and Seche Environnement go up and down completely randomly.
Pair Corralation between Cardinal Health and Seche Environnement
Assuming the 90 days trading horizon Cardinal Health is expected to generate 0.75 times more return on investment than Seche Environnement. However, Cardinal Health is 1.33 times less risky than Seche Environnement. It trades about 0.04 of its potential returns per unit of risk. Seche Environnement SA is currently generating about -0.05 per unit of risk. If you would invest 10,320 in Cardinal Health on September 14, 2024 and sell it today you would earn a total of 1,435 from holding Cardinal Health or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.27% |
| Values | Daily Returns |
Cardinal Health vs. Seche Environnement SA
Performance |
| Timeline |
| Cardinal Health |
| Seche Environnement |
Cardinal Health and Seche Environnement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and Seche Environnement
The main advantage of trading using opposite Cardinal Health and Seche Environnement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, Seche Environnement 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 Seche Environnement will offset losses from the drop in Seche Environnement's long position.| Cardinal Health vs. Schroders Investment Trusts | Cardinal Health vs. Samsung Electronics Co | Cardinal Health vs. Various Eateries PLC | Cardinal Health vs. Electronic Arts |
| Seche Environnement vs. Abingdon Health Plc | Seche Environnement vs. Sabre Insurance Group | Seche Environnement vs. Cardinal Health | Seche Environnement vs. Eco Animal Health |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |