Correlation Between Cardinal Health, and Annaly Capital
Can any of the company-specific risk be diversified away by investing in both Cardinal Health, and Annaly Capital 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 Cardinal Health, and Annaly Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health, and Annaly Capital Management,, you can compare the effects of market volatilities on Cardinal Health, and Annaly Capital 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 Cardinal Health, with a short position of Annaly Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health, and Annaly Capital.
Diversification Opportunities for Cardinal Health, and Annaly Capital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cardinal and Annaly is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health, and Annaly Capital Management, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annaly Capital Manag and Cardinal Health, 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 Cardinal Health, are associated (or correlated) with Annaly Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annaly Capital Manag has no effect on the direction of Cardinal Health, i.e., Cardinal Health, and Annaly Capital go up and down completely randomly.
Pair Corralation between Cardinal Health, and Annaly Capital
If you would invest 11,535 in Annaly Capital Management, on November 5, 2024 and sell it today you would earn a total of 347.00 from holding Annaly Capital Management, or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health, vs. Annaly Capital Management,
Performance |
| Timeline |
| Cardinal Health, |
| Annaly Capital Manag |
Cardinal Health, and Annaly Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health, and Annaly Capital
The main advantage of trading using opposite Cardinal Health, and Annaly Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health, position performs unexpectedly, Annaly Capital 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 Annaly Capital will offset losses from the drop in Annaly Capital's long position.| Cardinal Health, vs. Taiwan Semiconductor Manufacturing | Cardinal Health, vs. Apple Inc | Cardinal Health, vs. Alibaba Group Holding | Cardinal Health, vs. Microsoft |
| Annaly Capital vs. HCA Healthcare, | Annaly Capital vs. Hospital Mater Dei | Annaly Capital vs. CM Hospitalar SA | Annaly Capital vs. Tyson Foods |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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