Correlation Between SmartStop Self and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both SmartStop Self 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 SmartStop Self and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartStop Self Storage and Cardinal Health, you can compare the effects of market volatilities on SmartStop Self 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 SmartStop Self with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartStop Self and Cardinal Health.
Diversification Opportunities for SmartStop Self and Cardinal Health
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SmartStop and Cardinal is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and SmartStop Self 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 SmartStop Self Storage 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 SmartStop Self i.e., SmartStop Self and Cardinal Health go up and down completely randomly.
Pair Corralation between SmartStop Self and Cardinal Health
Assuming the 90 days horizon SmartStop Self Storage is expected to generate 0.12 times more return on investment than Cardinal Health. However, SmartStop Self Storage is 8.11 times less risky than Cardinal Health. It trades about 0.0 of its potential returns per unit of risk. Cardinal Health is currently generating about -0.08 per unit of risk. If you would invest 885.00 in SmartStop Self Storage on September 13, 2024 and sell it today you would earn a total of 0.00 from holding SmartStop Self Storage or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SmartStop Self Storage vs. Cardinal Health
Performance |
| Timeline |
| SmartStop Self Storage |
| Cardinal Health |
SmartStop Self and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmartStop Self and Cardinal Health
The main advantage of trading using opposite SmartStop Self and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartStop Self 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.| SmartStop Self vs. Rexford Industrial Realty | SmartStop Self vs. LXP Industrial Trust | SmartStop Self vs. Public Storage | SmartStop Self vs. Rexford Industrial Realty |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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