Correlation Analysis Between DOW and CVS Health

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

 Predicted Return Density 

DOW  vs.  CVS Health Corp.

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 2.67 times less return on investment than CVS Health. But when comparing it to its historical volatility, DOW is 2.07 times less risky than CVS Health. It trades about 0.2 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  6,024  in CVS Health Corporation on October 22, 2019 and sell it today you would earn a total of  1,456  from holding CVS Health Corporation or generate 24.17% return on investment over 30 days.

Pair Corralation between DOW and CVS Health

Time Period3 Months [change]
StrengthVery Strong
ValuesDaily Returns

Diversification Opportunities for DOW and CVS Health

DOW diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and DOW 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 DOW 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 DOW i.e. DOW and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.