Correlation Analysis Between CVS Health and American Airlines

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

Comparative Performance

CVS Health  

Risk-Adjusted Performance

Over the last 30 days CVS Health Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
American Airlines  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.

CVS Health and American Airlines Volatility Contrast

 Predicted Return Density 

CVS Health Corp.  vs.  American Airlines Group Inc

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, CVS Health is expected to generate 3.96 times less return on investment than American Airlines. But when comparing it to its historical volatility, CVS Health Corporation is 1.81 times less risky than American Airlines. It trades about 0.01 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,178  in American Airlines Group on November 14, 2018 and sell it today you would earn a total of  68.00  from holding American Airlines Group or generate 2.14% return on investment over 30 days.

Pair Corralation between CVS Health and American Airlines

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for CVS Health and American Airlines

CVS Health Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines 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 American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of CVS Health i.e. CVS Health and American Airlines go up and down completely randomly.

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See also your portfolio center. Please also try Piotroski F Score module to get piotroski f score based on binary analysis strategy of nine different fundamentals.