Correlation Between Origin Bancorp, and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Origin Bancorp, 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 Origin Bancorp, and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Bancorp, and Cardinal Health, you can compare the effects of market volatilities on Origin Bancorp, 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 Origin Bancorp, with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Bancorp, and Cardinal Health.
Diversification Opportunities for Origin Bancorp, and Cardinal Health
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Origin and Cardinal is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Origin Bancorp, and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Origin Bancorp, 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 Origin Bancorp, 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 Origin Bancorp, i.e., Origin Bancorp, and Cardinal Health go up and down completely randomly.
Pair Corralation between Origin Bancorp, and Cardinal Health
Considering the 90-day investment horizon Origin Bancorp, is expected to generate 1.42 times more return on investment than Cardinal Health. However, Origin Bancorp, is 1.42 times more volatile than Cardinal Health. It trades about 0.36 of its potential returns per unit of risk. Cardinal Health is currently generating about 0.14 per unit of risk. If you would invest 3,339 in Origin Bancorp, on November 4, 2024 and sell it today you would earn a total of 475.00 from holding Origin Bancorp, or generate 14.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Origin Bancorp, vs. Cardinal Health
Performance |
| Timeline |
| Origin Bancorp, |
| Cardinal Health |
Origin Bancorp, and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Bancorp, and Cardinal Health
The main advantage of trading using opposite Origin Bancorp, and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Bancorp, 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.| Origin Bancorp, vs. Sunlands Technology Group | Origin Bancorp, vs. Ryanair Holdings PLC | Origin Bancorp, vs. Allient | Origin Bancorp, vs. Arrow Electronics |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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