Correlation Between Annaly Capital and Cardinal Health,
Can any of the company-specific risk be diversified away by investing in both Annaly Capital 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 Annaly Capital and Cardinal Health, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Annaly Capital Management, and Cardinal Health,, you can compare the effects of market volatilities on Annaly Capital 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 Annaly Capital with a short position of Cardinal Health,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annaly Capital and Cardinal Health,.
Diversification Opportunities for Annaly Capital and Cardinal Health,
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Annaly and Cardinal is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Annaly Capital Management, and Cardinal Health, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health, and Annaly Capital 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 Annaly Capital Management, 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 Annaly Capital i.e., Annaly Capital and Cardinal Health, go up and down completely randomly.
Pair Corralation between Annaly Capital and Cardinal Health,
Assuming the 90 days trading horizon Annaly Capital is expected to generate 4.19 times less return on investment than Cardinal Health,. But when comparing it to its historical volatility, Annaly Capital Management, is 1.89 times less risky than Cardinal Health,. It trades about 0.12 of its potential returns per unit of risk. Cardinal Health, is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 63,682 in Cardinal Health, on October 28, 2024 and sell it today you would earn a total of 9,180 from holding Cardinal Health, or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Annaly Capital Management, vs. Cardinal Health,
Performance |
| Timeline |
| Annaly Capital Manag |
| Cardinal Health, |
Annaly Capital and Cardinal Health, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Annaly Capital and Cardinal Health,
The main advantage of trading using opposite Annaly Capital and Cardinal Health, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annaly Capital 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.| Annaly Capital vs. Tyson Foods | Annaly Capital vs. United Airlines Holdings | Annaly Capital vs. Lloyds Banking Group | Annaly Capital vs. Patria Investments Limited |
| Cardinal Health, vs. Omega Healthcare Investors, | Cardinal Health, vs. American Airlines Group | Cardinal Health, vs. Tyson Foods | Cardinal Health, vs. Arrow Electronics, |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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