Correlation Between Cardinal Health, and Omega Healthcare
Can any of the company-specific risk be diversified away by investing in both Cardinal Health, and Omega Healthcare 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 Omega Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health, and Omega Healthcare Investors,, you can compare the effects of market volatilities on Cardinal Health, and Omega Healthcare 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 Omega Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health, and Omega Healthcare.
Diversification Opportunities for Cardinal Health, and Omega Healthcare
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cardinal and Omega is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health, and Omega Healthcare Investors, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Healthcare Inv 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 Omega Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Healthcare Inv has no effect on the direction of Cardinal Health, i.e., Cardinal Health, and Omega Healthcare go up and down completely randomly.
Pair Corralation between Cardinal Health, and Omega Healthcare
If you would invest 72,862 in Cardinal Health, on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Cardinal Health, or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Cardinal Health, vs. Omega Healthcare Investors,
Performance |
| Timeline |
| Cardinal Health, |
| Omega Healthcare Inv |
Cardinal Health, and Omega Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health, and Omega Healthcare
The main advantage of trading using opposite Cardinal Health, and Omega Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health, position performs unexpectedly, Omega Healthcare 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 Omega Healthcare will offset losses from the drop in Omega Healthcare's long position.| Cardinal Health, vs. Taiwan Semiconductor Manufacturing | Cardinal Health, vs. Apple Inc | Cardinal Health, vs. Alibaba Group Holding | Cardinal Health, vs. Microsoft |
| Omega Healthcare vs. KB Financial Group | Omega Healthcare vs. MAHLE Metal Leve | Omega Healthcare vs. Prudential Financial | Omega Healthcare vs. Nordon Indstrias Metalrgicas |
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.
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