Correlation Between KROGER and Cardinal Health
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By analyzing existing cross correlation between KROGER 54 percent and Cardinal Health, you can compare the effects of market volatilities on KROGER 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 KROGER with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of KROGER and Cardinal Health.
Diversification Opportunities for KROGER and Cardinal Health
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KROGER and Cardinal is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding KROGER 54 percent and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and KROGER 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 KROGER 54 percent 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 KROGER i.e., KROGER and Cardinal Health go up and down completely randomly.
Pair Corralation between KROGER and Cardinal Health
Assuming the 90 days trading horizon KROGER is expected to generate 1.25 times less return on investment than Cardinal Health. In addition to that, KROGER is 1.41 times more volatile than Cardinal Health. It trades about 0.04 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.06 per unit of volatility. If you would invest 10,303 in Cardinal Health on November 5, 2024 and sell it today you would earn a total of 2,063 from holding Cardinal Health or generate 20.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 48.37% |
| Values | Daily Returns |
KROGER 54 percent vs. Cardinal Health
Performance |
| Timeline |
| KROGER 54 percent |
| Cardinal Health |
KROGER and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KROGER and Cardinal Health
The main advantage of trading using opposite KROGER and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KROGER 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.| KROGER vs. CleanGo Innovations | KROGER vs. Copperbank Resources Corp | KROGER vs. Highway Holdings Limited | KROGER vs. Diageo PLC ADR |
| Cardinal Health vs. Pennant Group | Cardinal Health vs. The Ensign Group | Cardinal Health vs. Encompass Health Corp | Cardinal Health vs. Healthcare Services Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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