Correlation Analysis Between Apple and CVS Health

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

Apple  
1919

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.
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.

Apple and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

Apple  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 0.99 times more return on investment than CVS Health. However, Apple is 1.01 times less risky than CVS Health. It trades about 0.29 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.21 per unit of risk. If you would invest  21,417  in Apple on November 8, 2019 and sell it today you would earn a total of  5,654  from holding Apple or generate 26.4% return on investment over 30 days.

Pair Corralation between Apple and CVS Health

0.91
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy98.48%
ValuesDaily Returns

Diversification Opportunities for Apple and CVS Health

Apple diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Apple 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 Apple 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 Apple i.e. Apple and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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