Correlation Analysis Between International Business and CVS Health

This module allows you to analyze existing cross correlation between International Business Machines Corporation and CVS Health Corporation. You can compare the effects of market volatilities on International Business 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 International Business with a short position of CVS Health. See also your portfolio center. Please also check ongoing floating volatility patterns of International Business and CVS Health.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

International Business  

Risk-Adjusted Performance

Over the last 30 days International Business Machines Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The late stock price chaos, may contribute to medium term losses for the stakeholders.
CVS Health  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 5 (%) 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 July 2019.

International Business and CVS Health Volatility Contrast

 Predicted Return Density 

International Business Machine  vs.  CVS Health Corp.

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, International Business Machines Corporation is expected to under-perform the CVS Health. But the stock apears to be less risky and, when comparing its historical volatility, International Business Machines Corporation is 1.2 times less risky than CVS Health. The stock trades about -0.05 of its potential returns per unit of risk. The CVS Health Corporation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5,243  in CVS Health Corporation on May 19, 2019 and sell it today you would earn a total of  211.00  from holding CVS Health Corporation or generate 4.02% return on investment over 30 days.

Pair Corralation between International Business and CVS Health

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for International Business and CVS Health

International Business Machine diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and International Business 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 International Business Machines Corporation 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 International Business i.e. International Business and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.