Correlation Analysis Between American Airlines and CVS Health

This module allows you to analyze existing cross correlation between American Airlines Group 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.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

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 sluggish performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.
CVS Health  
1212

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively sluggish forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.

American Airlines and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to under-perform the CVS Health. In addition to that, American Airlines is 1.28 times more volatile than CVS Health Corporation. It trades about -0.21 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about 0.19 per unit of volatility. If you would invest  5,387  in CVS Health Corporation on July 20, 2019 and sell it today you would earn a total of  752.00  from holding CVS Health Corporation or generate 13.96% return on investment over 30 days.

Pair Corralation between American Airlines and CVS Health

-0.56
Time Period2 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and CVS Health

American Airlines Group Inc diversification synergy

Excellent 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 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.
See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.


 
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