Correlation Analysis Between CVS Health and Alcoa

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

CVS Health Corp.  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 1.16 times more return on investment than Alcoa. However, CVS Health is 1.16 times more volatile than Alcoa Corporation. It trades about -0.11 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.13 per unit of risk. If you would invest  7,874  in CVS Health Corporation on September 23, 2018 and sell it today you would lose (656.00)  from holding CVS Health Corporation or give up 8.33% of portfolio value over 30 days.

Pair Corralation between CVS Health and Alcoa

0.25
Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy85.19%
ValuesDaily Returns

Diversification

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and CVS Health 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 CVS Health Corporation are associated (or correlated) with Alcoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa has no effect on the direction of CVS Health i.e. CVS Health and Alcoa go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
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  
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.

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