Correlation Between Cardinal Health and Proficient Auto

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and Proficient Auto 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 Cardinal Health and Proficient Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Proficient Auto Logistics,, you can compare the effects of market volatilities on Cardinal Health and Proficient Auto 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 Cardinal Health with a short position of Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Proficient Auto.

Diversification Opportunities for Cardinal Health and Proficient Auto

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between Cardinal and Proficient is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi and Cardinal Health 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 Cardinal Health are associated (or correlated) with Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Cardinal Health i.e., Cardinal Health and Proficient Auto go up and down completely randomly.

Pair Corralation between Cardinal Health and Proficient Auto

Considering the 90-day investment horizon Cardinal Health is expected to generate 0.31 times more return on investment than Proficient Auto. However, Cardinal Health is 3.23 times less risky than Proficient Auto. It trades about 0.08 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.1 per unit of risk. If you would invest  11,335  in Cardinal Health on October 10, 2024 and sell it today you would earn a total of  805.00  from holding Cardinal Health or generate 7.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Cardinal Health  vs.  Proficient Auto Logistics,

 Performance 
       Timeline  
Cardinal Health 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Cardinal Health are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Cardinal Health may actually be approaching a critical reversion point that can send shares even higher in February 2025.
Proficient Auto Logi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Proficient Auto Logistics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Cardinal Health and Proficient Auto Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cardinal Health and Proficient Auto

The main advantage of trading using opposite Cardinal Health and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.
The idea behind Cardinal Health and Proficient Auto Logistics, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Bonds Directory
Find actively traded corporate debentures issued by US companies
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities