CVS Health Risk Analysis

CVS Health Corporation -- USA Stock  

USD 72.63  0.19  0.26%

Macroaxis considers CVS Health to be not too risky. CVS Health secures Sharpe Ratio (or Efficiency) of -0.3863 which signifies that CVS Health had -0.3863% of return per unit of volatility over the last 1 month. Macroaxis approach towards foreseeing risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. CVS Health Corporation exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm CVS Health Risk Adjusted Performance of (0.082054) and Mean Deviation of 1.1 to double-check risk estimate we provide.
Investment Horizon     30 Days    Login   to change

CVS Health Market Sensitivity

As returns on market increase, CVS Health returns are expected to increase less than the market. However during bear market, the loss on holding CVS Health will be expected to be smaller as well.
One Month Beta |Analyze CVS Health Demand Trend
Check current 30 days CVS Health correlation with market (DOW)
β = 0.8272
CVS Health Small BetaCVS Health Beta Legend

Projected Return Density Against Market

Considering 30-days investment horizon, CVS Health has beta of 0.8272 . This suggests as returns on market go up, CVS Health average returns are expected to increase less than the benchmark. However during bear market, the loss on holding CVS Health Corporation will be expected to be much smaller as well. Additionally, CVS Health Corporation has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of CVS Health is -258.88. The daily returns are destributed with a variance of 2.28 and standard deviation of 1.51. The mean deviation of CVS Health Corporation is currently at 1.07. For similar time horizon, the selected benchmark (DOW) has volatility of 0.23
α
Alpha over DOW
=(0.72) 
βBeta against DOW= 0.83 
σ
Overall volatility
= 1.51 
 IrInformation ratio =(0.48) 

Actual Return Volatility

CVS Health Corporation has volatility of 1.5108% on return distribution over 30 days investment horizon. DOW inherits 0.2252% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

CVS Health Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Below average

30 Days Economic Sensitivity

Follows market closely

Total Debt

CVS Health Total Debt History

Total Debt

Largest Trends

CVS Health Largest Period Trend

Investment Outlook

CVS Health Investment Opportunity
CVS Health Corporation has a volatility of 1.51 and is 6.57 times more volatile than DOW. 14% of all equities and portfolios are less risky than CVS Health. Compared to the overall equity markets, volatility of historical daily returns of CVS Health Corporation is lower than 14 (%) of all global equities and portfolios over the last 30 days. Use CVS Health Corporation to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of CVS Health to be traded at $76.26 in 30 days. As returns on market increase, CVS Health returns are expected to increase less than the market. However during bear market, the loss on holding CVS Health will be expected to be smaller as well.

CVS Health correlation with market

Average diversification
Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and equity matching DJI index in the same portfolio.

Volatility Indicators

CVS Health Current Risk Indicators