Correlation Between Cardinal Health and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and Gruppo Mutuionline 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 Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Cardinal Health and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Gruppo Mutuionline.
Diversification Opportunities for Cardinal Health and Gruppo Mutuionline
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cardinal and Gruppo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of Cardinal Health i.e., Cardinal Health and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between Cardinal Health and Gruppo Mutuionline
Assuming the 90 days horizon Cardinal Health is expected to generate 0.77 times more return on investment than Gruppo Mutuionline. However, Cardinal Health is 1.29 times less risky than Gruppo Mutuionline. It trades about 0.06 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.04 per unit of risk. If you would invest 7,259 in Cardinal Health on August 24, 2024 and sell it today you would earn a total of 3,886 from holding Cardinal Health or generate 53.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| Cardinal Health |
| Gruppo Mutuionline SpA |
Cardinal Health and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and Gruppo Mutuionline
The main advantage of trading using opposite Cardinal Health and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| Cardinal Health vs. Shanghai Pharmaceuticals Holding | Cardinal Health vs. Sinopharm Group Co | Cardinal Health vs. Superior Plus Corp | Cardinal Health vs. NMI Holdings |
| Gruppo Mutuionline vs. BROADSTNET LEADL 00025 | Gruppo Mutuionline vs. 24SEVENOFFICE GROUP AB | Gruppo Mutuionline vs. Fukuyama Transporting Co | Gruppo Mutuionline vs. Haier Smart Home |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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