Correlation Between Amir Marketing and CVS Health
Can any of the company-specific risk be diversified away by investing in both Amir Marketing and CVS Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Amir Marketing and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amir Marketing and and CVS Health Corp, you can compare the effects of market volatilities on Amir Marketing 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 Amir Marketing with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amir Marketing and CVS Health.
Diversification Opportunities for Amir Marketing and CVS Health
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amir and CVS is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amir Marketing and and CVS Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health Corp and Amir Marketing 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 Amir Marketing and 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 Corp has no effect on the direction of Amir Marketing i.e., Amir Marketing and CVS Health go up and down completely randomly.
Pair Corralation between Amir Marketing and CVS Health
Assuming the 90 days trading horizon Amir Marketing and is expected to generate 1.49 times more return on investment than CVS Health. However, Amir Marketing is 1.49 times more volatile than CVS Health Corp. It trades about 0.35 of its potential returns per unit of risk. CVS Health Corp is currently generating about -0.28 per unit of risk. If you would invest 200,066 in Amir Marketing and on January 24, 2024 and sell it today you would earn a total of 34,934 from holding Amir Marketing and or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Amir Marketing and vs. CVS Health Corp
Performance |
| Timeline |
| Amir Marketing |
| CVS Health Corp |
Amir Marketing and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amir Marketing and CVS Health
The main advantage of trading using opposite Amir Marketing and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amir Marketing position performs unexpectedly, CVS Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVS Health will offset losses from the drop in CVS Health's long position.| Amir Marketing vs. Intercure | Amir Marketing vs. Panaxia Labs Israel | Amir Marketing vs. Cannassure Therapeutics | Amir Marketing vs. ICL Israel Chemicals |
| CVS Health vs. Humana Inc | CVS Health vs. Cigna Corp | CVS Health vs. Elevance Health | CVS Health vs. Centene Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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