Correlation Between Cardinal Health and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and Sabien Technology 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 Sabien Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Sabien Technology Group, you can compare the effects of market volatilities on Cardinal Health and Sabien Technology 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 Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Sabien Technology.
Diversification Opportunities for Cardinal Health and Sabien Technology
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cardinal and Sabien is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology 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 Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of Cardinal Health i.e., Cardinal Health and Sabien Technology go up and down completely randomly.
Pair Corralation between Cardinal Health and Sabien Technology
Assuming the 90 days trading horizon Cardinal Health is expected to generate 0.43 times more return on investment than Sabien Technology. However, Cardinal Health is 2.32 times less risky than Sabien Technology. It trades about 0.13 of its potential returns per unit of risk. Sabien Technology Group is currently generating about 0.01 per unit of risk. If you would invest 9,790 in Cardinal Health on September 1, 2024 and sell it today you would earn a total of 2,445 from holding Cardinal Health or generate 24.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Cardinal Health vs. Sabien Technology Group
Performance |
| Timeline |
| Cardinal Health |
| Sabien Technology |
Cardinal Health and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and Sabien Technology
The main advantage of trading using opposite Cardinal Health and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.| Cardinal Health vs. Uniper SE | Cardinal Health vs. Mulberry Group PLC | Cardinal Health vs. London Security Plc | Cardinal Health vs. Triad Group PLC |
| Sabien Technology vs. Synchrony Financial | Sabien Technology vs. CleanTech Lithium plc | Sabien Technology vs. Virgin Wines UK | Sabien Technology vs. BW Offshore |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |