Correlation Between Cardinal Health and GAMCO Global
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and GAMCO Global 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 GAMCO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and GAMCO Global Gold, you can compare the effects of market volatilities on Cardinal Health and GAMCO Global 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 GAMCO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and GAMCO Global.
Diversification Opportunities for Cardinal Health and GAMCO Global
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cardinal and GAMCO is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and GAMCO Global Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMCO Global Gold 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 GAMCO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMCO Global Gold has no effect on the direction of Cardinal Health i.e., Cardinal Health and GAMCO Global go up and down completely randomly.
Pair Corralation between Cardinal Health and GAMCO Global
Considering the 90-day investment horizon Cardinal Health is expected to generate 1.94 times more return on investment than GAMCO Global. However, Cardinal Health is 1.94 times more volatile than GAMCO Global Gold. It trades about 0.05 of its potential returns per unit of risk. GAMCO Global Gold is currently generating about 0.04 per unit of risk. If you would invest 10,480 in Cardinal Health on September 3, 2024 and sell it today you would earn a total of 1,767 from holding Cardinal Health or generate 16.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.93% |
| Values | Daily Returns |
Cardinal Health vs. GAMCO Global Gold
Performance |
| Timeline |
| Cardinal Health |
| GAMCO Global Gold |
Cardinal Health and GAMCO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and GAMCO Global
The main advantage of trading using opposite Cardinal Health and GAMCO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, GAMCO Global 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 GAMCO Global will offset losses from the drop in GAMCO Global's long position.| Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
| GAMCO Global vs. Oxford Lane Capital | GAMCO Global vs. OFS Credit | GAMCO Global vs. XOMA Corporation | GAMCO Global vs. Oxford Lane Capital |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |