Correlation Between Gabriel Holding and CVS Health
Can any of the company-specific risk be diversified away by investing in both Gabriel Holding 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 Gabriel Holding and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabriel Holding and CVS Health Corp, you can compare the effects of market volatilities on Gabriel Holding 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 Gabriel Holding with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabriel Holding and CVS Health.
Diversification Opportunities for Gabriel Holding and CVS Health
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabriel and CVS is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gabriel Holding and CVS Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health Corp and Gabriel Holding 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 Gabriel Holding 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 Corp has no effect on the direction of Gabriel Holding i.e., Gabriel Holding and CVS Health go up and down completely randomly.
Pair Corralation between Gabriel Holding and CVS Health
Assuming the 90 days trading horizon Gabriel Holding is expected to generate 1.4 times more return on investment than CVS Health. However, Gabriel Holding is 1.4 times more volatile than CVS Health Corp. It trades about 0.14 of its potential returns per unit of risk. CVS Health Corp is currently generating about -0.36 per unit of risk. If you would invest 25,000 in Gabriel Holding on January 26, 2024 and sell it today you would earn a total of 1,600 from holding Gabriel Holding or generate 6.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
Gabriel Holding vs. CVS Health Corp
Performance |
Timeline |
Gabriel Holding |
CVS Health Corp |
Gabriel Holding and CVS Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gabriel Holding and CVS Health
The main advantage of trading using opposite Gabriel Holding and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabriel Holding position performs unexpectedly, CVS Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVS Health will offset losses from the drop in CVS Health's long position.Gabriel Holding vs. Broendbyernes IF Fodbold | Gabriel Holding vs. NKT AS | Gabriel Holding vs. Jyske Bank AS |
CVS Health vs. Humana Inc | CVS Health vs. Cigna Corp | CVS Health vs. Elevance Health | CVS Health vs. Centene Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |