Correlation Analysis Between CVS Health and XU100

This module allows you to analyze existing cross correlation between CVS Health Corporation and XU100. You can compare the effects of market volatilities on CVS Health and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and XU100.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

CVS Health Corp.  vs.  XU100

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 1.28 times more return on investment than XU100. However, CVS Health is 1.28 times more volatile than XU100. It trades about 0.12 of its potential returns per unit of risk. XU100 is currently generating about 0.03 per unit of risk. If you would invest  5,370  in CVS Health Corporation on July 26, 2019 and sell it today you would earn a total of  473.00  from holding CVS Health Corporation or generate 8.81% return on investment over 30 days.

Pair Corralation between CVS Health and XU100

-0.28
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.35%
ValuesDaily Returns

Diversification Opportunities for CVS Health and XU100

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 XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of CVS Health i.e. CVS Health and XU100 go up and down completely randomly.
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See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.


 
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