Correlation Between Brockhaus Capital and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital 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 Brockhaus Capital and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and Cardinal Health, you can compare the effects of market volatilities on Brockhaus Capital 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 Brockhaus Capital with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and Cardinal Health.
Diversification Opportunities for Brockhaus Capital and Cardinal Health
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brockhaus and Cardinal is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Brockhaus Capital 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 Brockhaus Capital Management 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 Brockhaus Capital i.e., Brockhaus Capital and Cardinal Health go up and down completely randomly.
Pair Corralation between Brockhaus Capital and Cardinal Health
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the Cardinal Health. In addition to that, Brockhaus Capital is 1.28 times more volatile than Cardinal Health. It trades about -0.13 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.12 per unit of volatility. If you would invest 10,212 in Cardinal Health on September 12, 2024 and sell it today you would earn a total of 1,383 from holding Cardinal Health or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. Cardinal Health
Performance |
| Timeline |
| Brockhaus Capital |
| Cardinal Health |
Brockhaus Capital and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and Cardinal Health
The main advantage of trading using opposite Brockhaus Capital and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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.| Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. SIVERS SEMICONDUCTORS AB |
| Cardinal Health vs. Henry Schein | Cardinal Health vs. Superior Plus Corp | Cardinal Health vs. NMI Holdings | Cardinal Health vs. SIVERS SEMICONDUCTORS AB |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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