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
Symbolsvs
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Comparative Performance

Centene  
1313

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Centene Corporation are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days. Despite somewhat fragile basic indicators, Centene sustained solid returns over the last few months and may actually be approaching a breakup point.
CVS Health  
1717

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively conflicting 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 
      Returns 

Centene Corp.  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Centene Corporation is expected to generate 1.78 times more return on investment than CVS Health. However, Centene is 1.78 times more volatile than CVS Health Corporation. It trades about 0.2 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.26 per unit of risk. If you would invest  4,527  in Centene Corporation on October 23, 2019 and sell it today you would earn a total of  1,442  from holding Centene Corporation or generate 31.85% return on investment over 30 days.

Pair Corralation between Centene and CVS Health

0.93
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Centene and CVS Health

Centene Corp. diversification synergy

Almost no diversification

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 Commodity Channel Index module to use commodity channel index to analyze current equity momentum.


 
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