Correlation Between CREDIT and Cardinal Health
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By analyzing existing cross correlation between CREDIT SUISSE AG and Cardinal Health, you can compare the effects of market volatilities on CREDIT 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 CREDIT with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDIT and Cardinal Health.
Diversification Opportunities for CREDIT and Cardinal Health
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between CREDIT and Cardinal is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT SUISSE AG and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and CREDIT 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 CREDIT SUISSE AG 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 CREDIT i.e., CREDIT and Cardinal Health go up and down completely randomly.
Pair Corralation between CREDIT and Cardinal Health
Assuming the 90 days trading horizon CREDIT is expected to generate 61.71 times less return on investment than Cardinal Health. But when comparing it to its historical volatility, CREDIT SUISSE AG is 12.18 times less risky than Cardinal Health. It trades about 0.03 of its potential returns per unit of risk. Cardinal Health is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 11,613 in Cardinal Health on September 2, 2024 and sell it today you would earn a total of 611.00 from holding Cardinal Health or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
CREDIT SUISSE AG vs. Cardinal Health
Performance |
| Timeline |
| CREDIT SUISSE AG |
| Cardinal Health |
CREDIT and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDIT and Cardinal Health
The main advantage of trading using opposite CREDIT and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDIT 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.| CREDIT vs. Cardinal Health | CREDIT vs. Kura Sushi USA | CREDIT vs. Sweetgreen | CREDIT vs. Ryman Hospitality Properties |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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