Pair Correlation Between DOW and CVS Health

This module allows you to analyze existing cross correlation between DOW and CVS Health Corporation. You can compare the effects of market volatilities on DOW and CVS 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 DOW with a short position of CVS Health. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and CVS Health.
 Time Horizon     30 Days    Login   to change
 DOW  vs   CVS Health Corp.
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.78 times more return on investment than CVS Health. However, DOW is 1.27 times less risky than CVS Health. It trades about 0.0 of its potential returns per unit of risk. CVS Health Corporation is currently generating about -0.4 per unit of risk. If you would invest  2,496,475  in DOW on February 18, 2018 and sell it today you would lose (1,824)  from holding DOW or give up 0.07% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DOW and CVS Health


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

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

Comparative Volatility

 Predicted Return Density