Correlation Analysis Between Alcoa and CVS Health

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

Comparative Performance

Alcoa  
0

Risk-Adjusted Performance

Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
CVS Health  
0

Risk-Adjusted Performance

Over the last 30 days CVS Health Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Alcoa and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

Alcoa Corp.  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the CVS Health. In addition to that, Alcoa is 1.84 times more volatile than CVS Health Corporation. It trades about -0.15 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about -0.02 per unit of volatility. If you would invest  7,372  in CVS Health Corporation on November 15, 2018 and sell it today you would lose (184.00)  from holding CVS Health Corporation or give up 2.5% of portfolio value over 30 days.

Pair Corralation between Alcoa and CVS Health

-0.07
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for Alcoa and CVS Health

Alcoa Corp. diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp. and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Alcoa 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 Alcoa 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 Alcoa i.e. Alcoa and CVS Health go up and down completely randomly.

Thematic Opportunities

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