This module allows you to analyze existing cross correlation between Apple and CVS Health Corporation. You can compare the effects of market volatilities on Apple 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 Apple with a short position of CVS Health. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and CVS Health.
Given the investment horizon of 30 days, Apple is expected to generate 0.99 times more return on investment than CVS Health. However, Apple is 1.01 times less risky than CVS Health. It trades about 0.39 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.37 per unit of risk. If you would invest 19,144 in Apple on July 20, 2018 and sell it today you would earn a total of 2,614 from holding Apple or generate 13.65% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Apple 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 Apple 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 Apple i.e. Apple and CVS Health go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.