Correlation Analysis Between Apple and CVS Health

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

Apple  
00

Risk-Adjusted Performance

Over the last 30 days Apple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Apple is not utilizing all of its potentials. The existing stock price chaos, may contribute to medium term losses for the stakeholders.
CVS Health  
00

Risk-Adjusted Performance

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.

Apple and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

Apple Inc  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to under-perform the CVS Health. In addition to that, Apple is 1.05 times more volatile than CVS Health Corporation. It trades about -0.06 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 Apple and CVS Health

0.35
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Apple and CVS Health

Apple Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple 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 Apple 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 Apple 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 Apple i.e. Apple and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.


 
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