Correlation Between Cardinal Health and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and FEMALE HEALTH 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 FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and FEMALE HEALTH, you can compare the effects of market volatilities on Cardinal Health and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and FEMALE HEALTH.
Diversification Opportunities for Cardinal Health and FEMALE HEALTH
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cardinal and FEMALE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Cardinal Health i.e., Cardinal Health and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Cardinal Health and FEMALE HEALTH
Assuming the 90 days horizon Cardinal Health is expected to generate 0.69 times more return on investment than FEMALE HEALTH. However, Cardinal Health is 1.45 times less risky than FEMALE HEALTH. It trades about 0.24 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.18 per unit of risk. If you would invest 10,250 in Cardinal Health on August 27, 2024 and sell it today you would earn a total of 1,495 from holding Cardinal Health or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. FEMALE HEALTH
Performance |
| Timeline |
| Cardinal Health |
| FEMALE HEALTH |
Cardinal Health and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and FEMALE HEALTH
The main advantage of trading using opposite Cardinal Health and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Cardinal Health vs. Westinghouse Air Brake | Cardinal Health vs. CompuGroup Medical SE | Cardinal Health vs. Chongqing Machinery Electric | Cardinal Health vs. DELTA AIR LINES |
| FEMALE HEALTH vs. GREENX METALS LTD | FEMALE HEALTH vs. Cogent Communications Holdings | FEMALE HEALTH vs. Chunghwa Telecom Co | FEMALE HEALTH vs. Mobilezone Holding AG |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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