Cardinal Health Stock Volatility
| CAH Stock | USD 201.11 1.38 0.68% |
Cardinal Health appears to be very steady, given 3 months investment horizon. Cardinal Health secures Sharpe Ratio (or Efficiency) of 0.21, which signifies that the company had a 0.21 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Cardinal Health, which you can use to evaluate the volatility of the firm. Please makes use of Cardinal Health's Risk Adjusted Performance of 0.1608, downside deviation of 1.01, and Mean Deviation of 1.03 to double-check if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.2074
| High Returns | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | CAH | |||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns |
Based on monthly moving average Cardinal Health is performing at about 16% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Cardinal Health by adding it to a well-diversified portfolio.
Key indicators related to Cardinal Health's volatility include:30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Cardinal Health Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Cardinal daily returns, and it is calculated using variance and standard deviation. We also use Cardinal's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Cardinal Health volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Cardinal Health at lower prices. For example, an investor can purchase Cardinal stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes. Main indicators related to Cardinal Health's market risk premium analysis include:
Beta 0.0716 | Alpha 0.44 | Risk 2.19 | Sharpe Ratio 0.21 | Expected Return 0.45 |
Moving together with Cardinal Stock
Moving against Cardinal Stock
| 0.83 | UNH | UnitedHealth Group CDR Earnings Call This Week | PairCorr |
| 0.72 | UNH | UnitedHealth Group | PairCorr |
| 0.71 | OPT | Optima Health plc | PairCorr |
| 0.59 | LH | Laboratory | PairCorr |
| 0.58 | CVS | CVS HEALTH CDR | PairCorr |
| 0.56 | 300015 | Aier Eye Hospital | PairCorr |
| 0.53 | SPI | Spire Healthcare | PairCorr |
| 0.49 | CVS | CVS Health Corp | PairCorr |
| 0.35 | CON | Concentra Group Holdings | PairCorr |
Cardinal Health Market Sensitivity And Downside Risk
Cardinal Health's beta coefficient measures the volatility of Cardinal stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Cardinal stock's returns against your selected market. In other words, Cardinal Health's beta of 0.0716 provides an investor with an approximation of how much risk Cardinal Health stock can potentially add to one of your existing portfolios. Cardinal Health has relatively low volatility with skewness of 5.33 and kurtosis of 36.66. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cardinal Health's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cardinal Health's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Cardinal Health Demand TrendCheck current 90 days Cardinal Health correlation with market (Dow Jones Industrial)Cardinal Health Volatility and Downside Risk
Cardinal standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Cardinal Health Stock Volatility Analysis
Volatility refers to the frequency at which Cardinal Health stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Cardinal Health's price changes. Investors will then calculate the volatility of Cardinal Health's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Cardinal Health's volatility:
Historical Volatility
This type of stock volatility measures Cardinal Health's fluctuations based on previous trends. It's commonly used to predict Cardinal Health's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Cardinal Health's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Cardinal Health's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Cardinal Health Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Cardinal Health Projected Return Density Against Market
Considering the 90-day investment horizon Cardinal Health has a beta of 0.0716 suggesting as returns on the market go up, Cardinal Health average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Cardinal Health will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cardinal Health or Health Care Providers & Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cardinal Health's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cardinal stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Cardinal Health has an alpha of 0.438, implying that it can generate a 0.44 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Cardinal Health Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Cardinal Health Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Cardinal Health is 482.2. The daily returns are distributed with a variance of 4.79 and standard deviation of 2.19. The mean deviation of Cardinal Health is currently at 1.03. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.44 | |
β | Beta against Dow Jones | 0.07 | |
σ | Overall volatility | 2.19 | |
Ir | Information ratio | 0.16 |
Cardinal Health Stock Return Volatility
Cardinal Health historical daily return volatility represents how much of Cardinal Health stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 2.1894% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7029% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
|
Risk-Adjusted Indicators
There is a big difference between Cardinal Stock performing well and Cardinal Health Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Cardinal Health's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| BDX | 1.03 | 0.06 | 0.06 | 0.14 | 0.83 | 2.37 | 6.92 | |||
| EW | 1.04 | 0.20 | 0.15 | 0.47 | 0.88 | 2.36 | 8.45 | |||
| COR | 0.87 | 0.07 | 0.01 | 0.42 | 1.38 | 1.76 | 7.13 | |||
| A | 1.11 | 0.05 | 0.03 | 0.14 | 1.22 | 2.34 | 6.50 | |||
| HLN | 0.96 | 0.13 | 0.04 | 1.27 | 1.04 | 2.81 | 6.17 | |||
| IQV | 1.04 | 0.21 | 0.19 | 0.32 | 0.77 | 3.12 | 6.13 | |||
| VEEV | 1.30 | (0.31) | 0.00 | (0.52) | 0.00 | 1.79 | 11.94 | |||
| RMD | 0.91 | (0.17) | 0.00 | (0.24) | 0.00 | 2.00 | 5.71 | |||
| BRKR | 2.00 | 0.61 | 0.33 | 0.83 | 1.39 | 5.53 | 11.96 | |||
| ARGX | 1.06 | (0.02) | 0.00 | 0.71 | 0.00 | 2.29 | 7.31 |
About Cardinal Health Volatility
Volatility is a rate at which the price of Cardinal Health or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Cardinal Health may increase or decrease. In other words, similar to Cardinal's beta indicator, it measures the risk of Cardinal Health and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cardinal Health fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. The company was incorporated in 1979 and is headquartered in Dublin, Ohio. Cardinal Health operates under Medical Distribution classification in the United States and is traded on New York Stock Exchange. It employs 46500 people.
Cardinal Health's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Cardinal Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Cardinal Health's price varies over time.
3 ways to utilize Cardinal Health's volatility to invest better
Higher Cardinal Health's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Cardinal Health stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Cardinal Health stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Cardinal Health investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Cardinal Health's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Cardinal Health's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Cardinal Health Investment Opportunity
Cardinal Health has a volatility of 2.19 and is 3.13 times more volatile than Dow Jones Industrial. 19 percent of all equities and portfolios are less risky than Cardinal Health. You can use Cardinal Health to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Cardinal Health to be traded at $197.09 in 90 days.Significant diversification
The correlation between Cardinal Health and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and DJI in the same portfolio, assuming nothing else is changed.
Cardinal Health Additional Risk Indicators
The analysis of Cardinal Health's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Cardinal Health's investment and either accepting that risk or mitigating it. Along with some common measures of Cardinal Health stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1608 | |||
| Market Risk Adjusted Performance | 6.21 | |||
| Mean Deviation | 1.03 | |||
| Semi Deviation | 0.4703 | |||
| Downside Deviation | 1.01 | |||
| Coefficient Of Variation | 482.2 | |||
| Standard Deviation | 2.19 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Cardinal Health Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
| GM vs. Cardinal Health | ||
| Citigroup vs. Cardinal Health | ||
| Alphabet vs. Cardinal Health | ||
| Visa vs. Cardinal Health | ||
| Microsoft vs. Cardinal Health | ||
| Walker Dunlop vs. Cardinal Health | ||
| Ford vs. Cardinal Health | ||
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Cardinal Health as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Cardinal Health's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Cardinal Health's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Cardinal Health.
Complementary Tools for Cardinal Stock analysis
When running Cardinal Health's price analysis, check to measure Cardinal Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cardinal Health is operating at the current time. Most of Cardinal Health's value examination focuses on studying past and present price action to predict the probability of Cardinal Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cardinal Health's price. Additionally, you may evaluate how the addition of Cardinal Health to your portfolios can decrease your overall portfolio volatility.
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets |