Correlation Between Astellas Pharma and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Astellas Pharma 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 Astellas Pharma and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astellas Pharma and Cardinal Health, you can compare the effects of market volatilities on Astellas Pharma 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 Astellas Pharma with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astellas Pharma and Cardinal Health.
Diversification Opportunities for Astellas Pharma and Cardinal Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astellas and Cardinal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astellas Pharma and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Astellas Pharma 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 Astellas Pharma 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 Astellas Pharma i.e., Astellas Pharma and Cardinal Health go up and down completely randomly.
Pair Corralation between Astellas Pharma and Cardinal Health
If you would invest 7,160 in Cardinal Health on September 3, 2024 and sell it today you would earn a total of 4,410 from holding Cardinal Health or generate 61.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Astellas Pharma vs. Cardinal Health
Performance |
| Timeline |
| Astellas Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cardinal Health |
Astellas Pharma and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astellas Pharma and Cardinal Health
The main advantage of trading using opposite Astellas Pharma and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astellas Pharma 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.| Astellas Pharma vs. CPU SOFTWAREHOUSE | Astellas Pharma vs. BORR DRILLING NEW | Astellas Pharma vs. Alfa Financial Software | Astellas Pharma vs. 24SEVENOFFICE GROUP AB |
| Cardinal Health vs. AmerisourceBergen | Cardinal Health vs. Sinopharm Group Co | Cardinal Health vs. Superior Plus Corp | Cardinal Health vs. NMI Holdings |
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.
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