Correlation Between FDG Electric and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both FDG Electric 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 FDG Electric and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and Cardinal Health, you can compare the effects of market volatilities on FDG Electric 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 FDG Electric with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Cardinal Health.
Diversification Opportunities for FDG Electric and Cardinal Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Cardinal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and FDG Electric 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 FDG Electric Vehicles 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 FDG Electric i.e., FDG Electric and Cardinal Health go up and down completely randomly.
Pair Corralation between FDG Electric and Cardinal Health
If you would invest 11,133 in Cardinal Health on September 23, 2024 and sell it today you would earn a total of 695.00 from holding Cardinal Health or generate 6.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.48% |
Values | Daily Returns |
FDG Electric Vehicles vs. Cardinal Health
Performance |
Timeline |
FDG Electric Vehicles |
Cardinal Health |
FDG Electric and Cardinal Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FDG Electric and Cardinal Health
The main advantage of trading using opposite FDG Electric and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric 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.FDG Electric vs. BKV Corporation | FDG Electric vs. Republic Bancorp | FDG Electric vs. KKR Co LP | FDG Electric vs. Obayashi |
Cardinal Health vs. Cigna Corp | Cardinal Health vs. Definitive Healthcare Corp | Cardinal Health vs. Edwards Lifesciences Corp | Cardinal Health vs. Guardant Health |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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