Correlation Analysis Between CVS Health and International Business

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

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.

CVS Health and International Business Volatility Contrast

 Predicted Return Density 

CVS Health Corp.  vs.  International Business Machine

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to under-perform the International Business. In addition to that, CVS Health is 2.68 times more volatile than International Business Machines Corporation. It trades about -0.17 of its total potential returns per unit of risk. International Business Machines Corporation is currently generating about 0.15 per unit of volatility. If you would invest  13,289  in International Business Machines Corporation on February 22, 2019 and sell it today you would earn a total of  656.00  from holding International Business Machines Corporation or generate 4.94% return on investment over 30 days.

Pair Corralation between CVS Health and International Business

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for CVS Health and International Business

CVS Health Corp. diversification synergy

Very good diversification

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

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.