Correlation Between Enalyzer and CVS Health

By analyzing existing cross correlation between Enalyzer AS and CVS Health, you can compare the effects of market volatilities on Enalyzer and CVS Health 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 Enalyzer with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enalyzer and CVS Health.

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Can any of the company-specific risk be diversified away by investing in both Enalyzer and CVS Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Enalyzer and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Enalyzer and CVS Health

0.51
  Correlation Coefficient
Enalyzer AS
CVS Health

Very weak diversification

The 3 months correlation between Enalyzer and CVS Health is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Enalyzer AS and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Enalyzer 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 Enalyzer AS are associated (or correlated) with CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of Enalyzer i.e. Enalyzer and CVS Health go up and down completely randomly.

Pair Corralation between Enalyzer and CVS Health

Assuming the 30 trading days horizon, Enalyzer AS is expected to generate 3.5 times more return on investment than CVS Health. However, Enalyzer is 3.5 times more volatile than CVS Health. It trades about 0.04 of its potential returns per unit of risk. CVS Health is currently generating about 0.06 per unit of risk. If you would invest  382.00  in Enalyzer AS on June 11, 2020 and sell it today you would earn a total of  8.00  from holding Enalyzer AS or generate 2.09% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy93.75%
ValuesDaily Returns

Enalyzer AS  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 
Enalyzer AS 
22

Enalyzer Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Enalyzer AS are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Enalyzer sustained solid returns over the last few months and may actually be approaching a breakup point.
CVS Health 
44

CVS Health Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, CVS Health may actually be approaching a critical reversion point that can send shares even higher in August 2020.

Enalyzer and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.


 
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