Correlation Between METISA Metalrgica and Cardinal Health,

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

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

Diversification Opportunities for METISA Metalrgica and Cardinal Health,

0.63

Correlation Coefficient

METISA Metalrgica  Cardinal Health,

Poor diversification

The 3 months correlation between METISA and Cardinal is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding METISA Metalrgica Timboense and Cardinal Health, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health, and METISA Metalrgica 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 METISA Metalrgica Timboense 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 METISA Metalrgica i.e., METISA Metalrgica and Cardinal Health, go up and down completely randomly.

Pair Corralation between METISA Metalrgica and Cardinal Health,

Assuming the 90 days trading horizon METISA Metalrgica is expected to generate 2.54 times less return on investment than Cardinal Health,. But when comparing it to its historical volatility, METISA Metalrgica Timboense is 1.19 times less risky than Cardinal Health,. It trades about 0.08 of its potential returns per unit of risk. Cardinal Health, is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  71,554  in Cardinal Health, on April 24, 2025 and sell it today you would earn a total of  18,547  from holding Cardinal Health, or generate 25.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

METISA Metalrgica Timboense  vs.  Cardinal Health,

METISA Metalrgica

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in METISA Metalrgica Timboense are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, METISA Metalrgica may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cardinal Health,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cardinal Health, are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cardinal Health, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with METISA Metalrgica and Cardinal Health,

The main advantage of trading using opposite METISA Metalrgica and Cardinal Health, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METISA Metalrgica 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 METISA Metalrgica Timboense 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.