Correlation Analysis Between CVS Health and American Airlines

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

Comparative Performance

CVS Health  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.
American Airlines  

Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.

CVS Health and American Airlines Volatility Contrast

 Predicted Return Density 

CVS Health Corp.  vs.  American Airlines Group Inc

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 0.72 times more return on investment than American Airlines. However, CVS Health Corporation is 1.4 times less risky than American Airlines. It trades about 0.18 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.0 per unit of risk. If you would invest  6,343  in CVS Health Corporation on November 14, 2019 and sell it today you would earn a total of  1,016  from holding CVS Health Corporation or generate 16.02% return on investment over 30 days.

Pair Corralation between CVS Health and American Airlines

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for CVS Health and American Airlines

CVS Health Corp. diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and CVS Health 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 CVS Health Corporation are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of CVS Health i.e. CVS Health and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.