Correlation Analysis Between Centene and CVS Health

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

Comparative Performance


Risk-Adjusted Performance

Over the last 30 days Centene 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 October 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
CVS Health  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 14 (%) 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.

Centene and CVS Health Volatility Contrast

 Predicted Return Density 

Centene Corp.  vs.  CVS Health Corp.

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, Centene Corporation is expected to under-perform the CVS Health. In addition to that, Centene is 1.15 times more volatile than CVS Health Corporation. It trades about -0.15 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about 0.21 per unit of volatility. If you would invest  5,267  in CVS Health Corporation on August 22, 2019 and sell it today you would earn a total of  1,163  from holding CVS Health Corporation or generate 22.08% return on investment over 30 days.

Pair Corralation between Centene and CVS Health

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Centene and CVS Health

Centene Corp. diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Centene 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 Centene 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 Centene 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 Centene i.e. Centene and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.