Correlation Between Storebrand Indeks and CVS Health
Can any of the company-specific risk be diversified away by investing in both Storebrand Indeks 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 Storebrand Indeks and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Storebrand Indeks and CVS Health Corp, you can compare the effects of market volatilities on Storebrand Indeks 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 Storebrand Indeks with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Indeks and CVS Health.
Diversification Opportunities for Storebrand Indeks and CVS Health
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Storebrand and CVS is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Indeks 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 Storebrand Indeks 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 Storebrand Indeks 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 Storebrand Indeks i.e., Storebrand Indeks and CVS Health go up and down completely randomly.
Pair Corralation between Storebrand Indeks and CVS Health
If you would invest (100.00) in Storebrand Indeks on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Storebrand Indeks or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Storebrand Indeks vs. CVS Health Corp
Performance |
Timeline |
Storebrand Indeks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
CVS Health Corp |
Storebrand Indeks and CVS Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Storebrand Indeks and CVS Health
The main advantage of trading using opposite Storebrand Indeks and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand Indeks 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.Storebrand Indeks vs. NTG Nordic Transport | Storebrand Indeks vs. TROPHY GAMES Development | Storebrand Indeks vs. PARKEN Sport Entertainment | Storebrand Indeks vs. Prime Office 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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