Correlation Analysis Between FAIRFAX FINANCIAL and CVS Health

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

FAIRFAX FINANCIAL  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in FAIRFAX FINANCIAL HOLDINGS LTD are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Allthough quite persistent forward indicators, FAIRFAX FINANCIAL is not utilizing all of its potentials. The existing stock price mess, may contribute to short term losses for the partners.
CVS Health  
1515

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 15 (%) 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.

FAIRFAX FINANCIAL and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

FAIRFAX FINANCIAL HOLDINGS LTD  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, FAIRFAX FINANCIAL is expected to generate 6.94 times less return on investment than CVS Health. In addition to that, FAIRFAX FINANCIAL is 1.1 times more volatile than CVS Health Corporation. It trades about 0.03 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about 0.23 per unit of volatility. If you would invest  6,205  in CVS Health Corporation on October 21, 2019 and sell it today you would earn a total of  1,341  from holding CVS Health Corporation or generate 21.61% return on investment over 30 days.

Pair Corralation between FAIRFAX FINANCIAL and CVS Health

0.28
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for FAIRFAX FINANCIAL and CVS Health

FAIRFAX FINANCIAL HOLDINGS LTD diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding FAIRFAX FINANCIAL HOLDINGS LTD and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and FAIRFAX FINANCIAL 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 FAIRFAX FINANCIAL HOLDINGS LTD 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 FAIRFAX FINANCIAL i.e. FAIRFAX FINANCIAL and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.


 
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