Correlation Between MyHealthChecked Plc and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both MyHealthChecked Plc 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 MyHealthChecked Plc and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MyHealthChecked Plc and Cardinal Health, you can compare the effects of market volatilities on MyHealthChecked Plc 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 MyHealthChecked Plc with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyHealthChecked Plc and Cardinal Health.
Diversification Opportunities for MyHealthChecked Plc and Cardinal Health
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between MyHealthChecked and Cardinal is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and MyHealthChecked Plc 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 MyHealthChecked Plc 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 MyHealthChecked Plc i.e., MyHealthChecked Plc and Cardinal Health go up and down completely randomly.
Pair Corralation between MyHealthChecked Plc and Cardinal Health
Assuming the 90 days trading horizon MyHealthChecked Plc is expected to under-perform the Cardinal Health. In addition to that, MyHealthChecked Plc is 1.38 times more volatile than Cardinal Health. It trades about -0.1 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.21 per unit of volatility. If you would invest 11,082 in Cardinal Health on August 29, 2024 and sell it today you would earn a total of 1,126 from holding Cardinal Health or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MyHealthChecked Plc vs. Cardinal Health
Performance |
| Timeline |
| MyHealthChecked Plc |
| Cardinal Health |
MyHealthChecked Plc and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyHealthChecked Plc and Cardinal Health
The main advantage of trading using opposite MyHealthChecked Plc and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyHealthChecked Plc 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.| MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Hyundai Motor | MyHealthChecked Plc vs. Toyota Motor Corp |
| Cardinal Health vs. Lendinvest PLC | Cardinal Health vs. Neometals | Cardinal Health vs. Coor Service Management | Cardinal Health vs. Albion Technology General |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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