Correlation Analysis Between CVS Health and NQTH

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

 Predicted Return Density 
      Returns 

CVS Health Corp.  vs.  NQTH

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 2.13 times more return on investment than NQTH. However, CVS Health is 2.13 times more volatile than NQTH. It trades about 0.14 of its potential returns per unit of risk. NQTH is currently generating about -0.18 per unit of risk. If you would invest  5,474  in CVS Health Corporation on July 27, 2019 and sell it today you would earn a total of  550.00  from holding CVS Health Corporation or generate 10.05% return on investment over 30 days.

Pair Corralation between CVS Health and NQTH

-0.79
Time Period2 Months [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for CVS Health and NQTH

CVS Health Corp. diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH 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 NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of CVS Health i.e. CVS Health and NQTH go up and down completely randomly.
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See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.


 
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