Correlation Between Cardinal Health and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and AOI Electronics 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 AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and AOI Electronics Co, you can compare the effects of market volatilities on Cardinal Health and AOI Electronics 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 AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and AOI Electronics.
Diversification Opportunities for Cardinal Health and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cardinal and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics 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 AOI Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOI Electronics has no effect on the direction of Cardinal Health i.e., Cardinal Health and AOI Electronics go up and down completely randomly.
Pair Corralation between Cardinal Health and AOI Electronics
If you would invest 10,730 in Cardinal Health on September 5, 2024 and sell it today you would earn a total of 825.00 from holding Cardinal Health or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. AOI Electronics Co
Performance |
| Timeline |
| Cardinal Health |
| AOI Electronics |
Cardinal Health and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and AOI Electronics
The main advantage of trading using opposite Cardinal Health and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, AOI Electronics 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 AOI Electronics will offset losses from the drop in AOI Electronics' long position.| Cardinal Health vs. Superior Plus Corp | Cardinal Health vs. NMI Holdings | Cardinal Health vs. Origin Agritech | Cardinal Health vs. SIVERS SEMICONDUCTORS AB |
| AOI Electronics vs. Pure Storage | AOI Electronics vs. Cardinal Health | AOI Electronics vs. DICKER DATA LTD | AOI Electronics vs. National Health Investors |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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