Correlation Between Cardinal Health and KINDER
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By analyzing existing cross correlation between Cardinal Health and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on Cardinal Health and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and KINDER.
Diversification Opportunities for Cardinal Health and KINDER
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cardinal and KINDER is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and KINDER MORGAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN ENERGY 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN ENERGY has no effect on the direction of Cardinal Health i.e., Cardinal Health and KINDER go up and down completely randomly.
Pair Corralation between Cardinal Health and KINDER
Considering the 90-day investment horizon Cardinal Health is expected to generate 0.84 times more return on investment than KINDER. However, Cardinal Health is 1.19 times less risky than KINDER. It trades about 0.26 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about -0.22 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 1,435 from holding Cardinal Health or generate 13.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
Cardinal Health vs. KINDER MORGAN ENERGY
Performance |
| Timeline |
| Cardinal Health |
| KINDER MORGAN ENERGY |
Cardinal Health and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and KINDER
The main advantage of trading using opposite Cardinal Health and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.| Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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