Correlation Between Cardinal Health and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and MyHealthChecked Plc 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 MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and MyHealthChecked Plc, you can compare the effects of market volatilities on Cardinal Health and MyHealthChecked Plc 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 MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and MyHealthChecked Plc.
Diversification Opportunities for Cardinal Health and MyHealthChecked Plc
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cardinal and MyHealthChecked is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc 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 MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of Cardinal Health i.e., Cardinal Health and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between Cardinal Health and MyHealthChecked Plc
Assuming the 90 days trading horizon Cardinal Health is expected to generate 0.72 times more return on investment than MyHealthChecked Plc. However, Cardinal Health is 1.38 times less risky than MyHealthChecked Plc. It trades about 0.21 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.1 per unit of risk. If you would invest 11,082 in Cardinal Health on August 29, 2024 and sell it today you would earn a total of 1,126 from holding Cardinal Health or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. MyHealthChecked Plc
Performance |
| Timeline |
| Cardinal Health |
| MyHealthChecked Plc |
Cardinal Health and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and MyHealthChecked Plc
The main advantage of trading using opposite Cardinal Health and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, MyHealthChecked Plc 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 MyHealthChecked Plc will offset losses from the drop in MyHealthChecked Plc's long position.| Cardinal Health vs. Lendinvest PLC | Cardinal Health vs. Neometals | Cardinal Health vs. Albion Technology General | Cardinal Health vs. Jupiter Fund Management |
| MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Hyundai Motor | MyHealthChecked Plc vs. Toyota Motor Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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