Correlation Analysis Between CVS Health and Home Depot

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

CVS Health Corp.  vs.  The Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 1.55 times more return on investment than Home Depot. However, CVS Health is 1.55 times more volatile than The Home Depot. It trades about 0.11 of its potential returns per unit of risk. The Home Depot is currently generating about 0.12 per unit of risk. If you would invest  7,496  in CVS Health Corporation on August 27, 2018 and sell it today you would earn a total of  265.00  from holding CVS Health Corporation or generate 3.54% return on investment over 30 days.

Pair Corralation between CVS Health and Home Depot

0.69
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
CVS Health  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.
The Home Depot  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

My Equities

My Current Equities and Potential Positions

View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1166.09

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Idea Breakdown module to analyze constituents of all macroaxis ideas. macroaxis investment ideas are predefined, sector-focused investing themes.


 
Search macroaxis.com