This module allows you to analyze existing cross correlation between CVS Health Corporation and American Airlines Group. You can compare the effects of market volatilities on CVS Health and American Airlines 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 CVS Health with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and American Airlines.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively invariable forward-looking signals, CVS Health is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short running losses for the management.
Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
CVS Health and American Airlines Volatility Contrast
Predicted Return Density
CVS Health Corp. vs. American Airlines Group Inc
Considering 30-days investment horizon, CVS Health Corporation is expected to generate 0.64 times more return on investment than American Airlines. However, CVS Health Corporation is 1.57 times less risky than American Airlines. It trades about 0.06 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.04 per unit of risk. If you would invest 5,254 in CVS Health Corporation on May 17, 2019 and sell it today you would earn a total of 163.00 from holding CVS Health Corporation or generate 3.1% return on investment over 30 days.
Pair Corralation between CVS Health and American Airlines
|Time Period||2 Months [change]|
Diversification Opportunities for CVS Health and American Airlines
Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and CVS Health 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 CVS Health Corporation are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of CVS Health i.e. CVS Health and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.