Correlation Analysis Between American Airlines and CVS Health

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

Comparative Performance

American Airlines  
2

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.
CVS Health  
0

Risk-Adjusted Performance

Over the last 30 days CVS Health Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

American Airlines and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to generate 1.81 times more return on investment than CVS Health. However, American Airlines is 1.81 times more volatile than CVS Health Corporation. It trades about 0.04 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.0 per unit of risk. If you would invest  3,178  in American Airlines Group on November 14, 2018 and sell it today you would earn a total of  121.00  from holding American Airlines Group or generate 3.81% return on investment over 30 days.

Pair Corralation between American Airlines and CVS Health

0.82
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and CVS Health

American Airlines Group Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and American Airlines 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 American Airlines Group 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 American Airlines i.e. American Airlines and CVS Health go up and down completely randomly.

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