Correlation Analysis Between CVS Health and Chevron

This module allows you to analyze existing cross correlation between CVS Health Corporation and Chevron Corporation. You can compare the effects of market volatilities on CVS Health and Chevron 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 Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and Chevron.
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.

Risk-Adjusted Performance

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

CVS Health and Chevron Volatility Contrast

 Predicted Return Density 

CVS Health Corp.  vs.  Chevron Corp.

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, CVS Health is expected to generate 5.01 times less return on investment than Chevron. In addition to that, CVS Health is 1.14 times more volatile than Chevron Corporation. It trades about 0.04 of its total potential returns per unit of risk. Chevron Corporation is currently generating about 0.25 per unit of volatility. If you would invest  10,099  in Chevron Corporation on January 21, 2019 and sell it today you would earn a total of  1,915  from holding Chevron Corporation or generate 18.96% return on investment over 30 days.

Pair Corralation between CVS Health and Chevron

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for CVS Health and Chevron

CVS Health Corp. diversification synergy

Weak diversification

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

Thematic Opportunities

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Chevron Corporation

Pair trading matchups for Chevron

See also your portfolio center. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.