This module allows you to analyze existing cross correlation between Apple and CVS Health Corporation. You can compare the effects of market volatilities on Apple 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 Apple with a short position of CVS Health. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and CVS Health.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in September 2019.
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.
Apple and CVS Health Volatility Contrast
Predicted Return Density
Apple Inc vs. CVS Health Corp.
Given the investment horizon of 30 days, Apple is expected to generate 2.28 times less return on investment than CVS Health. In addition to that, Apple is 1.04 times more volatile than CVS Health Corporation. It trades about 0.08 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 Apple and CVS Health
|Time Period||2 Months [change]|
Diversification Opportunities for Apple and CVS Health
Overlapping area represents the amount of risk that can be diversified away by holding Apple 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 Apple 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 Apple 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 Apple i.e. Apple and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.