This module allows you to analyze existing cross correlation between Alcoa Corporation and CVS Health Corporation. You can compare the effects of market volatilities on Alcoa 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 Alcoa with a short position of CVS Health. See also your portfolio center. Please also check ongoing floating volatility patterns of Alcoa and CVS Health.
|Horizon||30 Days Login to change|
Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
Over the last 30 days CVS Health Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, CVS Health is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short running losses for the management.
Alcoa and CVS Health Volatility Contrast
Predicted Return Density
Alcoa Corp. vs. CVS Health Corp.
Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the CVS Health. In addition to that, Alcoa is 1.39 times more volatile than CVS Health Corporation. It trades about -0.19 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about -0.05 per unit of volatility. If you would invest 5,495 in CVS Health Corporation on April 24, 2019 and sell it today you would lose (219.00) from holding CVS Health Corporation or give up 3.99% of portfolio value over 30 days.
Pair Corralation between Alcoa and CVS Health
|Time Period||2 Months [change]|
Diversification Opportunities for Alcoa and CVS Health
Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Alcoa 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 Alcoa Corporation 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 Alcoa i.e. Alcoa and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.