Correlation Analysis Between Alcoa and CVS Health

This module allows you to analyze existing cross correlation between Alcoa Corporation and CVS Health Corporation. You can compare the effects of market volatilities on Alcoa 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 Alcoa with a short position of CVS Health. See also your portfolio center. Please also check ongoing floating volatility patterns of Alcoa and CVS Health.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Alcoa  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Alcoa is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short term losses for the investors.
CVS Health  
1414

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.

Alcoa and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

Alcoa Corp.  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Alcoa is expected to generate 4.54 times less return on investment than CVS Health. In addition to that, Alcoa is 2.14 times more volatile than CVS Health Corporation. It trades about 0.02 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about 0.21 per unit of volatility. If you would invest  6,368  in CVS Health Corporation on November 7, 2019 and sell it today you would earn a total of  1,168  from holding CVS Health Corporation or generate 18.34% return on investment over 30 days.

Pair Corralation between Alcoa and CVS Health

0.15
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Alcoa and CVS Health

Alcoa Corp. diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Alcoa 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 Alcoa Corporation 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 Alcoa i.e. Alcoa and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.


 
Search macroaxis.com