Correlation Between AENA SME and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both AENA SME 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 AENA SME and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AENA SME UNSPADR110 and Cardinal Health, you can compare the effects of market volatilities on AENA SME 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 AENA SME with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of AENA SME and Cardinal Health.
Diversification Opportunities for AENA SME and Cardinal Health
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AENA and Cardinal is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding AENA SME UNSPADR110 and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and AENA SME 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 AENA SME UNSPADR110 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 AENA SME i.e., AENA SME and Cardinal Health go up and down completely randomly.
Pair Corralation between AENA SME and Cardinal Health
Assuming the 90 days trading horizon AENA SME is expected to generate 1.13 times less return on investment than Cardinal Health. But when comparing it to its historical volatility, AENA SME UNSPADR110 is 1.6 times less risky than Cardinal Health. It trades about 0.18 of its potential returns per unit of risk. Cardinal Health is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,058 in Cardinal Health on September 2, 2024 and sell it today you would earn a total of 1,512 from holding Cardinal Health or generate 15.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AENA SME UNSPADR110 vs. Cardinal Health
Performance |
| Timeline |
| AENA SME UNSPADR110 |
| Cardinal Health |
AENA SME and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AENA SME and Cardinal Health
The main advantage of trading using opposite AENA SME and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AENA SME 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.| AENA SME vs. OFFICE DEPOT | AENA SME vs. MAVEN WIRELESS SWEDEN | AENA SME vs. CITY OFFICE REIT | AENA SME vs. GREENX METALS LTD |
| Cardinal Health vs. Wayside Technology Group | Cardinal Health vs. COPLAND ROAD CAPITAL | Cardinal Health vs. SIEM OFFSHORE NEW | Cardinal Health vs. CSSC Offshore Marine |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |