Correlation Between Uniper SE and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Cardinal Health 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 Uniper SE and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Cardinal Health, you can compare the effects of market volatilities on Uniper SE and Cardinal Health 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 Uniper SE with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Cardinal Health.
Diversification Opportunities for Uniper SE and Cardinal Health
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uniper and Cardinal is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Uniper SE 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 Uniper SE are associated (or correlated) with Cardinal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Health has no effect on the direction of Uniper SE i.e., Uniper SE and Cardinal Health go up and down completely randomly.
Pair Corralation between Uniper SE and Cardinal Health
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the Cardinal Health. But the stock apears to be less risky and, when comparing its historical volatility, Uniper SE is 1.46 times less risky than Cardinal Health. The stock trades about -0.4 of its potential returns per unit of risk. The Cardinal Health is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniper SE vs. Cardinal Health
Performance |
| Timeline |
| Uniper SE |
| Cardinal Health |
Uniper SE and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Cardinal Health
The main advantage of trading using opposite Uniper SE and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Cardinal Health 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 Cardinal Health will offset losses from the drop in Cardinal Health's long position.| Uniper SE vs. Atresmedia | Uniper SE vs. AcadeMedia AB | Uniper SE vs. Charter Communications Cl | Uniper SE vs. Kaufman Et Broad |
| Cardinal Health vs. Lendinvest PLC | Cardinal Health vs. Neometals | Cardinal Health vs. Coor Service Management | Cardinal Health vs. Albion Technology General |
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.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |