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
Compare Efficiency

Comparative Performance

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.

CVS Health and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

CVS Health Corp.  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 0.54 times more return on investment than Alcoa. However, CVS Health Corporation is 1.84 times less risky than Alcoa. It trades about -0.02 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.15 per unit of risk. 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 CVS Health and Alcoa

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

Diversification Opportunities for CVS Health and Alcoa

CVS Health Corp. diversification synergy

Good 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.

Thematic Opportunities

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See also your portfolio center. Please also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.


 
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