Correlation Between INTNED and Cardinal Health

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

By analyzing existing cross correlation between INTNED 4017 28 MAR 28 and Cardinal Health, you can compare the effects of market volatilities on INTNED 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 INTNED with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTNED and Cardinal Health.

Diversification Opportunities for INTNED and Cardinal Health

-0.45

Correlation Coefficient

INTNED  Cardinal Health

Very good diversification

The 3 months correlation between INTNED and Cardinal is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding INTNED 4017 28 MAR 28 and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and INTNED 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 INTNED 4017 28 MAR 28 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 INTNED i.e., INTNED and Cardinal Health go up and down completely randomly.

Pair Corralation between INTNED and Cardinal Health

Assuming the 90 days trading horizon INTNED 4017 28 MAR 28 is expected to under-perform the Cardinal Health. But the bond apears to be less risky and, when comparing its historical volatility, INTNED 4017 28 MAR 28 is 1.37 times less risky than Cardinal Health. The bond trades about -0.29 of its potential returns per unit of risk. The Cardinal Health is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  12,003  in Cardinal Health on September 19, 2024 and sell it today you would lose (348.00) from holding Cardinal Health or give up 2.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

INTNED 4017 28 MAR 28  vs.  Cardinal Health

INTNED 4017 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 4017 28 MAR 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for INTNED 4017 28 MAR 28 investors.

Cardinal Health

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cardinal Health are ranked lower than 5 (%) 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 recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with INTNED and Cardinal Health

The main advantage of trading using opposite INTNED and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTNED 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.

The idea behind INTNED 4017 28 MAR 28 and Cardinal Health 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.