Correlation Between ASTRA INTERNATIONAL and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTRA INTERNATIONAL and Cardinal Health, you can compare the effects of market volatilities on ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRA INTERNATIONAL and Cardinal Health.
Diversification Opportunities for ASTRA INTERNATIONAL and Cardinal Health
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASTRA and Cardinal is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and Cardinal Health go up and down completely randomly.
Pair Corralation between ASTRA INTERNATIONAL and Cardinal Health
Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to generate 16.22 times less return on investment than Cardinal Health. In addition to that, ASTRA INTERNATIONAL is 1.35 times more volatile than Cardinal Health. It trades about 0.0 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.07 per unit of volatility. If you would invest 9,685 in Cardinal Health on August 28, 2024 and sell it today you would earn a total of 2,060 from holding Cardinal Health or generate 21.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASTRA INTERNATIONAL vs. Cardinal Health
Performance |
| Timeline |
| ASTRA INTERNATIONAL |
| Cardinal Health |
ASTRA INTERNATIONAL and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRA INTERNATIONAL and Cardinal Health
The main advantage of trading using opposite ASTRA INTERNATIONAL and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL 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.| ASTRA INTERNATIONAL vs. Spirent Communications plc | ASTRA INTERNATIONAL vs. Meiko Electronics Co | ASTRA INTERNATIONAL vs. Comba Telecom Systems | ASTRA INTERNATIONAL vs. METHODE ELECTRONICS |
| Cardinal Health vs. Singapore Telecommunications Limited | Cardinal Health vs. BW OFFSHORE LTD | Cardinal Health vs. Computer And Technologies | Cardinal Health vs. HEMISPHERE EGY |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |