Correlation Between Cardinal Health and Hong Kong
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and Hong Kong 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 Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Hong Kong Land, you can compare the effects of market volatilities on Cardinal Health and Hong Kong 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 Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Hong Kong.
Diversification Opportunities for Cardinal Health and Hong Kong
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cardinal and Hong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Hong Kong Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Land 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 Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Land has no effect on the direction of Cardinal Health i.e., Cardinal Health and Hong Kong go up and down completely randomly.
Pair Corralation between Cardinal Health and Hong Kong
If you would invest 741.00 in Hong Kong Land on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Hong Kong Land or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. Hong Kong Land
Performance |
| Timeline |
| Cardinal Health |
| Hong Kong Land |
Cardinal Health and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and Hong Kong
The main advantage of trading using opposite Cardinal Health and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| Cardinal Health vs. MT Bank Corp | Cardinal Health vs. Associated British Foods | Cardinal Health vs. Verizon Communications | Cardinal Health vs. Supermarket Income REIT |
| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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