Correlation Between Moens Bank and CVS Health
Can any of the company-specific risk be diversified away by investing in both Moens Bank 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 Moens Bank and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moens Bank AS and CVS Health Corp, you can compare the effects of market volatilities on Moens Bank 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 Moens Bank with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moens Bank and CVS Health.
Diversification Opportunities for Moens Bank and CVS Health
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Moens and CVS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Moens Bank AS 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 Moens Bank 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 Moens Bank 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 Corp has no effect on the direction of Moens Bank i.e., Moens Bank and CVS Health go up and down completely randomly.
Pair Corralation between Moens Bank and CVS Health
Assuming the 90 days trading horizon Moens Bank AS is expected to generate 0.63 times more return on investment than CVS Health. However, Moens Bank AS is 1.58 times less risky than CVS Health. It trades about 0.04 of its potential returns per unit of risk. CVS Health Corp is currently generating about -0.28 per unit of risk. If you would invest 22,800 in Moens Bank AS on January 18, 2024 and sell it today you would earn a total of 200.00 from holding Moens Bank AS or generate 0.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.91% |
Values | Daily Returns |
Moens Bank AS vs. CVS Health Corp
Performance |
Timeline |
Moens Bank AS |
CVS Health Corp |
Moens Bank and CVS Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Moens Bank and CVS Health
The main advantage of trading using opposite Moens Bank and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moens Bank 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.Moens Bank vs. Skjern Bank AS | Moens Bank vs. Lollands Bank | Moens Bank vs. Nordfyns Bank AS | Moens Bank vs. Groenlandsbanken 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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