Correlation Between State Street and CVS Health

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both State Street 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 State Street and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Disciplined and CVS Health Corp, you can compare the effects of market volatilities on State Street 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 State Street with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and CVS Health.

Diversification Opportunities for State Street and CVS Health

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between State and CVS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STATE STREET DISCIPLINED 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 State Street 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 State Street Disciplined 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 State Street i.e., State Street and CVS Health go up and down completely randomly.

Pair Corralation between State Street and CVS Health

If you would invest  7,627  in CVS Health Corp on December 29, 2023 and sell it today you would earn a total of  316.00  from holding CVS Health Corp or generate 4.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

STATE STREET DISCIPLINED  vs.  CVS Health Corp

 Performance 
       Timeline  
State Street Disciplined 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days State Street Disciplined has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, State Street is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
CVS Health Corp 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CVS Health is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

State Street and CVS Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with State Street and CVS Health

The main advantage of trading using opposite State Street and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street 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.
The idea behind State Street Disciplined and CVS Health Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments