Correlation Between Cardinal Health and WHITE
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By analyzing existing cross correlation between Cardinal Health and WHITE CAP BUYER, you can compare the effects of market volatilities on Cardinal Health and WHITE 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 WHITE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and WHITE.
Diversification Opportunities for Cardinal Health and WHITE
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cardinal and WHITE is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and WHITE CAP BUYER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHITE CAP BUYER 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 WHITE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHITE CAP BUYER has no effect on the direction of Cardinal Health i.e., Cardinal Health and WHITE go up and down completely randomly.
Pair Corralation between Cardinal Health and WHITE
Considering the 90-day investment horizon Cardinal Health is expected to generate 41.65 times less return on investment than WHITE. But when comparing it to its historical volatility, Cardinal Health is 50.27 times less risky than WHITE. It trades about 0.07 of its potential returns per unit of risk. WHITE CAP BUYER is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,782 in WHITE CAP BUYER on September 12, 2024 and sell it today you would earn a total of 1,294 from holding WHITE CAP BUYER or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Cardinal Health vs. WHITE CAP BUYER
Performance |
| Timeline |
| Cardinal Health |
| WHITE CAP BUYER |
Cardinal Health and WHITE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and WHITE
The main advantage of trading using opposite Cardinal Health and WHITE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, WHITE 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 WHITE will offset losses from the drop in WHITE's long position.| Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
| WHITE vs. Western Copper and | WHITE vs. Kandi Technologies Group | WHITE vs. Highway Holdings Limited | WHITE vs. Grupo Televisa SAB |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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