Correlation Between NORTHROP and Cardinal Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between NORTHROP GRUMMAN P and Cardinal Health, you can compare the effects of market volatilities on NORTHROP 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 NORTHROP with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORTHROP and Cardinal Health.
Diversification Opportunities for NORTHROP and Cardinal Health
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NORTHROP and Cardinal is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding NORTHROP GRUMMAN P and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and NORTHROP 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 NORTHROP GRUMMAN P 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 NORTHROP i.e., NORTHROP and Cardinal Health go up and down completely randomly.
Pair Corralation between NORTHROP and Cardinal Health
Assuming the 90 days trading horizon NORTHROP GRUMMAN P is expected to under-perform the Cardinal Health. But the bond apears to be less risky and, when comparing its historical volatility, NORTHROP GRUMMAN P is 1.48 times less risky than Cardinal Health. The bond trades about -0.04 of its potential returns per unit of risk. The Cardinal Health is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 10,852 in Cardinal Health on September 1, 2024 and sell it today you would earn a total of 1,372 from holding Cardinal Health or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORTHROP GRUMMAN P vs. Cardinal Health
Performance |
| Timeline |
| NORTHROP GRUMMAN P |
| Cardinal Health |
NORTHROP and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORTHROP and Cardinal Health
The main advantage of trading using opposite NORTHROP and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORTHROP 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.| NORTHROP vs. Cardinal Health | NORTHROP vs. Cumberland Pharmaceuticals | NORTHROP vs. Alvotech | NORTHROP vs. SEI Investments |
| Cardinal Health vs. Humana Inc | Cardinal Health vs. Cigna Corp | Cardinal Health vs. Elevance Health | Cardinal Health vs. Centene Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |