Correlation Between Cardinal Health and QUEEN S

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

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

Diversification Opportunities for Cardinal Health and QUEEN S

-0.17

Correlation Coefficient

Cardinal Health  QUEEN S

Good diversification

The 3 months correlation between Cardinal and QUEEN is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and QUEEN S ROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUEEN S ROAD 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 QUEEN S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUEEN S ROAD has no effect on the direction of Cardinal Health i.e., Cardinal Health and QUEEN S go up and down completely randomly.

Pair Corralation between Cardinal Health and QUEEN S

Assuming the 90 days horizon Cardinal Health is expected to generate 0.61 times more return on investment than QUEEN S. However, Cardinal Health is 1.64 times less risky than QUEEN S. It trades about 0.09 of its potential returns per unit of risk. QUEEN S ROAD is currently generating about -0.14 per unit of risk. If you would invest  11,275  in Cardinal Health on December 22, 2024 and sell it today you would earn a total of  830.00  from holding Cardinal Health or generate 7.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Cardinal Health  vs.  QUEEN S ROAD

Cardinal Health

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cardinal Health are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Cardinal Health may actually be approaching a critical reversion point that can send shares even higher in April 2025.

QUEEN S ROAD

Risk-Adjusted Performance

Very Weak

Over the last 90 days QUEEN S ROAD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Cardinal Health and QUEEN S

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

The idea behind Cardinal Health and QUEEN S ROAD 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.