Correlation Between Cardinal Health and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and Amkor Technology 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 Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Amkor Technology, you can compare the effects of market volatilities on Cardinal Health and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Amkor Technology.
Diversification Opportunities for Cardinal Health and Amkor Technology
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cardinal and Amkor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Cardinal Health i.e., Cardinal Health and Amkor Technology go up and down completely randomly.
Pair Corralation between Cardinal Health and Amkor Technology
Considering the 90-day investment horizon Cardinal Health is expected to generate 0.91 times more return on investment than Amkor Technology. However, Cardinal Health is 1.1 times less risky than Amkor Technology. It trades about 0.21 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.21 per unit of risk. If you would invest 11,087 in Cardinal Health on August 29, 2024 and sell it today you would earn a total of 1,176 from holding Cardinal Health or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. Amkor Technology
Performance |
| Timeline |
| Cardinal Health |
| Amkor Technology |
Cardinal Health and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and Amkor Technology
The main advantage of trading using opposite Cardinal Health and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges |