Correlation Analysis Between Humana and CVS Health

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

Humana  
1717

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Humana are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Humana revealed solid returns over the last few months and may actually be approaching a breakup point.
CVS Health  
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 11 (%) 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.

Humana and CVS Health Volatility Contrast

 Predicted Return Density 
    
  Returns 

Humana Inc  vs.  CVS Health Corp.

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Humana is expected to generate 1.21 times more return on investment than CVS Health. However, Humana is 1.21 times more volatile than CVS Health Corporation. It trades about 0.26 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.17 per unit of risk. If you would invest  28,809  in Humana on December 24, 2019 and sell it today you would earn a total of  7,335  from holding Humana or generate 25.46% return on investment over 30 days.

Pair Corralation between Humana and CVS Health

0.84
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Humana and CVS Health

Humana Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Humana 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 Humana 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 Humana 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 Humana i.e. Humana and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.