This module allows you to analyze existing cross correlation between American Airlines Group Inc and CVS Health Corporation. You can compare the effects of market volatilities on American Airlines 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 American Airlines with a short position of CVS Health. See also your portfolio center
. Please also check ongoing floating volatility patterns of American Airlines
and CVS Health
American Airlines Group Inc. vs CVS Health Corp.
Considering 30-days investment horizon, American Airlines is expected to generate 7.09 times less return on investment than CVS Health. In addition to that, American Airlines is 2.3 times more volatile than CVS Health Corporation. It trades about 0.01 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 7,885 in CVS Health Corporation on March 30, 2017 and sell it today you would earn a total of 359.00 from holding CVS Health Corporation or generate 4.55% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc. and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and American Airlines 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 American Airlines Group Inc 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 American Airlines i.e. American Airlines and CVS Health go up and down completely randomly.
Over the last 30 days American Airlines Group Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.