Correlation Between Cardinal Health and International Game
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and International Game 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 International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and International Game Technology, you can compare the effects of market volatilities on Cardinal Health and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and International Game.
Diversification Opportunities for Cardinal Health and International Game
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cardinal and International is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Cardinal Health i.e., Cardinal Health and International Game go up and down completely randomly.
Pair Corralation between Cardinal Health and International Game
Assuming the 90 days horizon Cardinal Health is expected to generate 0.69 times more return on investment than International Game. However, Cardinal Health is 1.45 times less risky than International Game. It trades about 0.07 of its potential returns per unit of risk. International Game Technology is currently generating about -0.01 per unit of risk. If you would invest 7,160 in Cardinal Health on September 3, 2024 and sell it today you would earn a total of 4,410 from holding Cardinal Health or generate 61.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. International Game Technology
Performance |
| Timeline |
| Cardinal Health |
| International Game |
Cardinal Health and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and International Game
The main advantage of trading using opposite Cardinal Health and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| Cardinal Health vs. AmerisourceBergen | Cardinal Health vs. Superior Plus Corp | Cardinal Health vs. NMI Holdings | Cardinal Health vs. Origin Agritech |
| International Game vs. Aluminum of | International Game vs. HOCHSCHILD MINING | International Game vs. GigaMedia | International Game vs. QINGCI GAMES INC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |