Correlation Between Benefytt Technologies and CVS Health
Can any of the company-specific risk be diversified away by investing in both Benefytt Technologies and CVS Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Benefytt Technologies and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benefytt Technologies and CVS Health Corp, you can compare the effects of market volatilities on Benefytt Technologies 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 Benefytt Technologies with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benefytt Technologies and CVS Health.
Diversification Opportunities for Benefytt Technologies and CVS Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benefytt and CVS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benefytt Technologies and CVS Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health Corp and Benefytt Technologies 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 Benefytt Technologies 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 Corp has no effect on the direction of Benefytt Technologies i.e., Benefytt Technologies and CVS Health go up and down completely randomly.
Pair Corralation between Benefytt Technologies and CVS Health
If you would invest (100.00) in Benefytt Technologies on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Benefytt Technologies or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Benefytt Technologies vs. CVS Health Corp
Performance |
| Timeline |
| Benefytt Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CVS Health Corp |
Benefytt Technologies and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benefytt Technologies and CVS Health
The main advantage of trading using opposite Benefytt Technologies and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benefytt Technologies position performs unexpectedly, CVS Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVS Health will offset losses from the drop in CVS Health's long position.| Benefytt Technologies vs. Kaiser Aluminum | Benefytt Technologies vs. Kenon Holdings | Benefytt Technologies vs. Vistra Energy Corp | Benefytt Technologies vs. Flexible Solutions International |
| CVS Health vs. Certara | CVS Health vs. HealthStream | CVS Health vs. HealthEquity | CVS Health vs. Evolent Health |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Transaction History View history of all your transactions and understand their impact on performance |