Pair Correlation Between CVS Health and Apple

This module allows you to analyze existing cross correlation between CVS Health Corporation and Apple Inc. You can compare the effects of market volatilities on CVS Health and Apple 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 Apple. See also your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and Apple.
Investment Horizon     30 Days    Login   to change
 CVS Health Corp.  vs   Apple Inc.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to under-perform the Apple. But the stock apears to be less risky and, when comparing its historical volatility, CVS Health Corporation is 1.46 times less risky than Apple. The stock trades about -0.19 of its potential returns per unit of risk. The Apple Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  13,711  in Apple Inc on February 22, 2017 and sell it today you would earn a total of  355.08  from holding Apple Inc or generate 2.59% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between CVS Health and Apple
-0.74

Parameters

Time Period1 Month [change]
DirectionNegative CVS Moved Down vs AAPL
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. and Apple Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of CVS Health i.e. CVS Health and Apple go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

CVS Health

  
0 

Risk-Adjusted Performance

Over the last 30 days CVS Health Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Apple Inc

  
11 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.