Correlation Between Cardinal Health and 404280CL1
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By analyzing existing cross correlation between Cardinal Health and HSBC HOLDINGS PLC, you can compare the effects of market volatilities on Cardinal Health and 404280CL1 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 404280CL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and 404280CL1.
Diversification Opportunities for Cardinal Health and 404280CL1
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cardinal and 404280CL1 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and HSBC HOLDINGS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC HOLDINGS PLC 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 404280CL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC HOLDINGS PLC has no effect on the direction of Cardinal Health i.e., Cardinal Health and 404280CL1 go up and down completely randomly.
Pair Corralation between Cardinal Health and 404280CL1
Considering the 90-day investment horizon Cardinal Health is expected to generate 1.22 times more return on investment than 404280CL1. However, Cardinal Health is 1.22 times more volatile than HSBC HOLDINGS PLC. It trades about 0.27 of its potential returns per unit of risk. HSBC HOLDINGS PLC is currently generating about -0.1 per unit of risk. If you would invest 10,789 in Cardinal Health on August 31, 2024 and sell it today you would earn a total of 1,474 from holding Cardinal Health or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Cardinal Health vs. HSBC HOLDINGS PLC
Performance |
| Timeline |
| Cardinal Health |
| HSBC HOLDINGS PLC |
Cardinal Health and 404280CL1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and 404280CL1
The main advantage of trading using opposite Cardinal Health and 404280CL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, 404280CL1 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 404280CL1 will offset losses from the drop in 404280CL1's long position.| Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
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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 Stocks Directory module to find actively traded stocks across global markets.
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