Correlation Between Cardinal Health and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and CHINA TONTINE 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 CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and CHINA TONTINE WINES, you can compare the effects of market volatilities on Cardinal Health and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and CHINA TONTINE.
Diversification Opportunities for Cardinal Health and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cardinal and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Cardinal Health i.e., Cardinal Health and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Cardinal Health and CHINA TONTINE
If you would invest 9,793 in Cardinal Health on August 28, 2024 and sell it today you would earn a total of 1,952 from holding Cardinal Health or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Cardinal Health |
| CHINA TONTINE WINES |
Cardinal Health and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and CHINA TONTINE
The main advantage of trading using opposite Cardinal Health and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Cardinal Health vs. Singapore Telecommunications Limited | Cardinal Health vs. BW OFFSHORE LTD | Cardinal Health vs. Computer And Technologies | Cardinal Health vs. HEMISPHERE EGY |
| CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. NMI Holdings | CHINA TONTINE vs. Origin Agritech | CHINA TONTINE vs. SIVERS SEMICONDUCTORS AB |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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