Correlation Analysis Between CVS Health and American Airlines

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

Comparative Performance

CVS Health  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.
American Airlines  
00

Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in November 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

CVS Health and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

CVS Health Corp.  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 0.65 times more return on investment than American Airlines. However, CVS Health Corporation is 1.54 times less risky than American Airlines. It trades about 0.16 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.1 per unit of risk. If you would invest  5,600  in CVS Health Corporation on September 16, 2019 and sell it today you would earn a total of  941.00  from holding CVS Health Corporation or generate 16.8% return on investment over 30 days.

Pair Corralation between CVS Health and American Airlines

-0.53
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for CVS Health and American Airlines

CVS Health Corp. diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines 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 American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of CVS Health i.e. CVS Health and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.


 
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