Correlation Between Roebuck Food and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Roebuck Food 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 Roebuck Food and Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roebuck Food Group and Cardinal Health, you can compare the effects of market volatilities on Roebuck Food 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 Roebuck Food with a short position of Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roebuck Food and Cardinal Health.
Diversification Opportunities for Roebuck Food and Cardinal Health
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Roebuck and Cardinal is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Roebuck Food Group and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health and Roebuck Food 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 Roebuck Food Group 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 Roebuck Food i.e., Roebuck Food and Cardinal Health go up and down completely randomly.
Pair Corralation between Roebuck Food and Cardinal Health
Assuming the 90 days trading horizon Roebuck Food Group is expected to under-perform the Cardinal Health. But the stock apears to be less risky and, when comparing its historical volatility, Roebuck Food Group is 3.0 times less risky than Cardinal Health. The stock trades about -0.13 of its potential returns per unit of risk. The Cardinal Health is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 13,546 in Cardinal Health on April 24, 2025 and sell it today you would earn a total of 2,134 from holding Cardinal Health or generate 15.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Roebuck Food Group vs. Cardinal Health
Performance |
Timeline |
Roebuck Food Group |
Cardinal Health |
Roebuck Food and Cardinal Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Roebuck Food and Cardinal Health
The main advantage of trading using opposite Roebuck Food and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roebuck Food 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.Roebuck Food vs. CATLIN GROUP | Roebuck Food vs. Tamburi Investment Partners | Roebuck Food vs. Synergia Energy | Roebuck Food vs. Magnora ASA |
Cardinal Health vs. Dairy Farm International | Cardinal Health vs. Sparebank 1 SR | Cardinal Health vs. Metro Bank PLC | Cardinal Health vs. Synchrony Financial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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