Correlation Analysis Between CVS Health and Chevron

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

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Chevron is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.

CVS Health and Chevron Volatility Contrast

 Predicted Return Density 

CVS Health Corp.  vs.  Chevron Corp.

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 1.01 times more return on investment than Chevron. However, CVS Health is 1.01 times more volatile than Chevron Corporation. It trades about 0.18 of its potential returns per unit of risk. Chevron Corporation is currently generating about -0.05 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 Chevron

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for CVS Health and Chevron

CVS Health Corp. diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of CVS Health i.e. CVS Health and Chevron go up and down completely randomly.
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.