Correlation Between Arhaus and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Arhaus 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 Arhaus and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arhaus Inc and Cardinal Health, you can compare the effects of market volatilities on Arhaus 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 Arhaus with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arhaus and Cardinal Health.
Diversification Opportunities for Arhaus and Cardinal Health
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Arhaus and Cardinal is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Arhaus Inc and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Arhaus 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 Arhaus Inc 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 Arhaus i.e., Arhaus and Cardinal Health go up and down completely randomly.
Pair Corralation between Arhaus and Cardinal Health
Given the investment horizon of 90 days Arhaus Inc is expected to under-perform the Cardinal Health. In addition to that, Arhaus is 4.85 times more volatile than Cardinal Health. It trades about -0.24 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.34 per unit of volatility. If you would invest 11,692 in Cardinal Health on October 12, 2024 and sell it today you would earn a total of 561.00 from holding Cardinal Health or generate 4.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Arhaus Inc vs. Cardinal Health
Performance |
Timeline |
Arhaus Inc |
Cardinal Health |
Arhaus and Cardinal Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arhaus and Cardinal Health
The main advantage of trading using opposite Arhaus and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arhaus 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.Arhaus vs. Floor Decor Holdings | Arhaus vs. Live Ventures | Arhaus vs. Haverty Furniture Companies | Arhaus vs. Haverty Furniture Companies |
Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |