Correlation Between Permanent TSB and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Permanent TSB and Cardinal 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 Permanent TSB and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Permanent TSB Group and Cardinal Health, you can compare the effects of market volatilities on Permanent TSB and Cardinal 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 Permanent TSB with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Permanent TSB and Cardinal Health.
Diversification Opportunities for Permanent TSB and Cardinal Health
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Permanent and Cardinal is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Permanent TSB Group and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Permanent TSB 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 Permanent TSB Group are associated (or correlated) with Cardinal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Health has no effect on the direction of Permanent TSB i.e., Permanent TSB and Cardinal Health go up and down completely randomly.
Pair Corralation between Permanent TSB and Cardinal Health
If you would invest 11,190 in Cardinal Health on September 4, 2024 and sell it today you would earn a total of 1,057 from holding Cardinal Health or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Permanent TSB Group vs. Cardinal Health
Performance |
| Timeline |
| Permanent TSB Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cardinal Health |
Permanent TSB and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Permanent TSB and Cardinal Health
The main advantage of trading using opposite Permanent TSB and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Permanent TSB position performs unexpectedly, Cardinal 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 Cardinal Health will offset losses from the drop in Cardinal Health's long position.| Permanent TSB vs. LENSAR Inc | Permanent TSB vs. Ryman Hospitality Properties | Permanent TSB vs. Esperion Therapeutics | Permanent TSB vs. Sonida Senior Living |
| Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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