Correlation Between Cardinal Health and Todos Medical Ltd

Can any of the company-specific risk be diversified away by investing in both Cardinal Health and Todos Medical Ltd 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 Todos Medical Ltd into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cardinal Health and Todos Medical, you can compare the effects of market volatilities on Cardinal Health and Todos Medical Ltd 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 Todos Medical Ltd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Todos Medical Ltd.

Diversification Opportunities for Cardinal Health and Todos Medical Ltd

0.0

Correlation Coefficient

Cardinal Health  Todos Medical Ltd

Pay attention - limited upside

The 3 months correlation between Cardinal and Todos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Todos Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Todos Medical Ltd 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 Todos Medical Ltd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Todos Medical Ltd has no effect on the direction of Cardinal Health i.e., Cardinal Health and Todos Medical Ltd go up and down completely randomly.

Pair Corralation between Cardinal Health and Todos Medical Ltd

If you would invest  12,533  in Cardinal Health on December 5, 2024 and sell it today you would earn a total of  98.00  from holding Cardinal Health or generate 0.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Cardinal Health  vs.  Todos Medical

Cardinal Health

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardinal Health are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Cardinal Health is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Todos Medical Ltd

Risk-Adjusted Performance

Very Weak

Over the last 90 days Todos Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Todos Medical Ltd is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cardinal Health and Todos Medical Ltd

The main advantage of trading using opposite Cardinal Health and Todos Medical Ltd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, Todos Medical Ltd 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 Todos Medical Ltd will offset losses from the drop in Todos Medical Ltd's long position.

The idea behind Cardinal Health and Todos Medical 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..