Correlation Between Khiron Life and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Khiron Life 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 Khiron Life and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Cardinal Health, you can compare the effects of market volatilities on Khiron Life 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 Khiron Life with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Cardinal Health.
Diversification Opportunities for Khiron Life and Cardinal Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and Cardinal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Khiron Life 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 Khiron Life Sciences 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 Khiron Life i.e., Khiron Life and Cardinal Health go up and down completely randomly.
Pair Corralation between Khiron Life and Cardinal Health
If you would invest 11,519 in Cardinal Health on October 30, 2024 and sell it today you would earn a total of 651.00 from holding Cardinal Health or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khiron Life Sciences vs. Cardinal Health
Performance |
| Timeline |
| Khiron Life Sciences |
| Cardinal Health |
Khiron Life and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Cardinal Health
The main advantage of trading using opposite Khiron Life and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life 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.| Khiron Life vs. Mitsubishi Materials | Khiron Life vs. Sumitomo Rubber Industries | Khiron Life vs. De Grey Mining | Khiron Life vs. NEWELL RUBBERMAID |
| Cardinal Health vs. AECOM TECHNOLOGY | Cardinal Health vs. SCOTT TECHNOLOGY | Cardinal Health vs. Easy Software AG | Cardinal Health vs. GRIFFIN MINING LTD |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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