Correlation Between SINOPHARM GROUP and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both SINOPHARM GROUP 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 SINOPHARM GROUP and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SINOPHARM GROUP 15ON and Cardinal Health, you can compare the effects of market volatilities on SINOPHARM GROUP 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 SINOPHARM GROUP with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINOPHARM GROUP and Cardinal Health.
Diversification Opportunities for SINOPHARM GROUP and Cardinal Health
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SINOPHARM and Cardinal is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SINOPHARM GROUP 15ON and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and SINOPHARM GROUP 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 SINOPHARM GROUP 15ON 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 SINOPHARM GROUP i.e., SINOPHARM GROUP and Cardinal Health go up and down completely randomly.
Pair Corralation between SINOPHARM GROUP and Cardinal Health
Assuming the 90 days trading horizon SINOPHARM GROUP 15ON is expected to under-perform the Cardinal Health. In addition to that, SINOPHARM GROUP is 1.01 times more volatile than Cardinal Health. It trades about -0.17 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.13 per unit of volatility. If you would invest 11,315 in Cardinal Health on November 30, 2024 and sell it today you would earn a total of 815.00 from holding Cardinal Health or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINOPHARM GROUP 15ON vs. Cardinal Health
Performance |
| Timeline |
| SINOPHARM GROUP 15ON |
| Cardinal Health |
SINOPHARM GROUP and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINOPHARM GROUP and Cardinal Health
The main advantage of trading using opposite SINOPHARM GROUP and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINOPHARM GROUP 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.| SINOPHARM GROUP vs. AXWAY SOFTWARE EO | SINOPHARM GROUP vs. DEVRY EDUCATION GRP | SINOPHARM GROUP vs. betterU Education Corp | SINOPHARM GROUP vs. NORTHEAST UTILITIES |
| Cardinal Health vs. VELA TECHNOLPLC LS 0001 | Cardinal Health vs. Easy Software AG | Cardinal Health vs. THORNEY TECHS LTD | Cardinal Health vs. Uber Technologies |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |