Correlation Between Cardinal Health and MICROSOFT
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By analyzing existing cross correlation between Cardinal Health and MICROSOFT PORATION, you can compare the effects of market volatilities on Cardinal Health and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and MICROSOFT.
Diversification Opportunities for Cardinal Health and MICROSOFT
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cardinal and MICROSOFT is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT PORATION 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Cardinal Health i.e., Cardinal Health and MICROSOFT go up and down completely randomly.
Pair Corralation between Cardinal Health and MICROSOFT
Considering the 90-day investment horizon Cardinal Health is expected to generate 1.06 times more return on investment than MICROSOFT. However, Cardinal Health is 1.06 times more volatile than MICROSOFT PORATION. It trades about 0.07 of its potential returns per unit of risk. MICROSOFT PORATION is currently generating about 0.0 per unit of risk. If you would invest 7,666 in Cardinal Health on September 13, 2024 and sell it today you would earn a total of 4,376 from holding Cardinal Health or generate 57.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Cardinal Health vs. MICROSOFT PORATION
Performance |
| Timeline |
| Cardinal Health |
| MICROSOFT PORATION |
Cardinal Health and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and MICROSOFT
The main advantage of trading using opposite Cardinal Health and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT's long position.| Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
| MICROSOFT vs. LGI Homes | MICROSOFT vs. Mid Atlantic Home Health | MICROSOFT vs. Hooker Furniture | MICROSOFT vs. Cardinal Health |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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