Correlation Between Kelly Services and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Kelly Services 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 Kelly Services and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kelly Services A and Cardinal Health, you can compare the effects of market volatilities on Kelly Services 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 Kelly Services with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kelly Services and Cardinal Health.
Diversification Opportunities for Kelly Services and Cardinal Health
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kelly and Cardinal is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kelly Services A and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Kelly Services 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 Kelly Services A 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 Kelly Services i.e., Kelly Services and Cardinal Health go up and down completely randomly.
Pair Corralation between Kelly Services and Cardinal Health
Assuming the 90 days horizon Kelly Services A is expected to under-perform the Cardinal Health. In addition to that, Kelly Services is 1.47 times more volatile than Cardinal Health. It trades about -0.19 of its total potential returns per unit of risk. Cardinal Health is currently generating about -0.09 per unit of volatility. If you would invest 12,129 in Cardinal Health on September 15, 2024 and sell it today you would lose (319.00) from holding Cardinal Health or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kelly Services A vs. Cardinal Health
Performance |
| Timeline |
| Kelly Services A |
| Cardinal Health |
Kelly Services and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kelly Services and Cardinal Health
The main advantage of trading using opposite Kelly Services and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kelly Services 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.| Kelly Services vs. Korn Ferry | Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Hudson Global | Kelly Services vs. ManpowerGroup |
| Cardinal Health vs. ASGN Inc | Cardinal Health vs. Kforce Inc | Cardinal Health vs. Kelly Services A | Cardinal Health vs. AMN Healthcare Services |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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