Correlation Between Cardinal Health and Tufton Oceanic
Can any of the company-specific risk be diversified away by investing in both Cardinal Health and Tufton Oceanic 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 Tufton Oceanic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Tufton Oceanic Assets, you can compare the effects of market volatilities on Cardinal Health and Tufton Oceanic 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 Tufton Oceanic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Tufton Oceanic.
Diversification Opportunities for Cardinal Health and Tufton Oceanic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cardinal and Tufton is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Tufton Oceanic Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tufton Oceanic Assets 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 Tufton Oceanic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tufton Oceanic Assets has no effect on the direction of Cardinal Health i.e., Cardinal Health and Tufton Oceanic go up and down completely randomly.
Pair Corralation between Cardinal Health and Tufton Oceanic
Assuming the 90 days trading horizon Cardinal Health is expected to generate 4.13 times more return on investment than Tufton Oceanic. However, Cardinal Health is 4.13 times more volatile than Tufton Oceanic Assets. It trades about 0.25 of its potential returns per unit of risk. Tufton Oceanic Assets is currently generating about 0.06 per unit of risk. If you would invest 14,941 in Cardinal Health on September 3, 2025 and sell it today you would earn a total of 6,044 from holding Cardinal Health or generate 40.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. Tufton Oceanic Assets
Performance |
| Timeline |
| Cardinal Health |
| Tufton Oceanic Assets |
Cardinal Health and Tufton Oceanic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and Tufton Oceanic
The main advantage of trading using opposite Cardinal Health and Tufton Oceanic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health position performs unexpectedly, Tufton Oceanic 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 Tufton Oceanic will offset losses from the drop in Tufton Oceanic's long position.| Cardinal Health vs. Conygar Investment Co | Cardinal Health vs. Martin Marietta Materials | Cardinal Health vs. Morgan Advanced Materials | Cardinal Health vs. FC Investment Trust |
| Tufton Oceanic vs. SMA Solar Technology | Tufton Oceanic vs. AfriTin Mining | Tufton Oceanic vs. Oxford Technology 2 | Tufton Oceanic vs. Air Products Chemicals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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