Correlation Between Gruppo Mutuionline and CVS Health

Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline and CVS Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gruppo Mutuionline and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gruppo Mutuionline SpA and CVS Health, you can compare the effects of market volatilities on Gruppo Mutuionline 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 Gruppo Mutuionline with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and CVS Health.

Diversification Opportunities for Gruppo Mutuionline and CVS Health

0.09

Correlation Coefficient

Gruppo Mutuionline  CVS Health

Significant diversification

The 3 months correlation between Gruppo and CVS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and CVS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Gruppo Mutuionline 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 Gruppo Mutuionline SpA 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 Gruppo Mutuionline i.e., Gruppo Mutuionline and CVS Health go up and down completely randomly.

Pair Corralation between Gruppo Mutuionline and CVS Health

Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 1.34 times more return on investment than CVS Health. However, Gruppo Mutuionline is 1.34 times more volatile than CVS Health. It trades about 0.0 of its potential returns per unit of risk. CVS Health is currently generating about -0.05 per unit of risk. If you would invest  4,258  in Gruppo Mutuionline SpA on May 6, 2025 and sell it today you would lose (93.00) from holding Gruppo Mutuionline SpA or give up 2.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gruppo Mutuionline SpA  vs.  CVS Health

Gruppo Mutuionline SpA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gruppo Mutuionline SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Gruppo Mutuionline is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

CVS Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days CVS Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CVS Health is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Gruppo Mutuionline and CVS Health

The main advantage of trading using opposite Gruppo Mutuionline and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, CVS Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVS Health will offset losses from the drop in CVS Health's long position.

The idea behind Gruppo Mutuionline SpA and CVS Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.