Correlation Analysis Between CVS Health and NIKKEI 225

This module allows you to analyze existing cross correlation between CVS Health Corporation and NIKKEI 225. You can compare the effects of market volatilities on CVS Health and NIKKEI 225 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 CVS Health with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and NIKKEI 225.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

CVS Health Corp.  vs.  NIKKEI 225

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 1.19 times more return on investment than NIKKEI 225. However, CVS Health is 1.19 times more volatile than NIKKEI 225. It trades about 0.16 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.03 per unit of risk. If you would invest  5,368  in CVS Health Corporation on July 25, 2019 and sell it today you would earn a total of  656.00  from holding CVS Health Corporation or generate 12.22% return on investment over 30 days.

Pair Corralation between CVS Health and NIKKEI 225

-0.62
Time Period2 Months [change]
DirectionNegative 
StrengthWeak
Accuracy82.22%
ValuesDaily Returns

Diversification Opportunities for CVS Health and NIKKEI 225

CVS Health Corp. diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and CVS Health 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 CVS Health Corporation are associated (or correlated) with NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of CVS Health i.e. CVS Health and NIKKEI 225 go up and down completely randomly.
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See also your portfolio center. Please also try Money Flow Index module to determine momentum by analyzing money flow index and other technical indicators.


 
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