Correlation Between CVS Health and Alstria Office
Can any of the company-specific risk be diversified away by investing in both CVS Health and Alstria Office 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 CVS Health and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVS Health and alstria office REIT AG, you can compare the effects of market volatilities on CVS Health and Alstria Office 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 Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and Alstria Office.
Diversification Opportunities for CVS Health and Alstria Office
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CVS and Alstria is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding CVS Health and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT 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 are associated (or correlated) with Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of CVS Health i.e., CVS Health and Alstria Office go up and down completely randomly.
Pair Corralation between CVS Health and Alstria Office
Assuming the 90 days trading horizon CVS Health is expected to under-perform the Alstria Office. In addition to that, CVS Health is 1.78 times more volatile than alstria office REIT AG. It trades about -0.08 of its total potential returns per unit of risk. alstria office REIT AG is currently generating about 0.24 per unit of volatility. If you would invest 582.00 in alstria office REIT AG on September 23, 2024 and sell it today you would earn a total of 178.00 from holding alstria office REIT AG or generate 30.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CVS Health vs. alstria office REIT AG
Performance |
Timeline |
CVS Health |
alstria office REIT |
CVS Health and Alstria Office Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CVS Health and Alstria Office
The main advantage of trading using opposite CVS Health and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVS Health position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.CVS Health vs. SALESFORCE INC CDR | CVS Health vs. NURAN WIRELESS INC | CVS Health vs. Carsales | CVS Health vs. KENEDIX OFFICE INV |
Alstria Office vs. EAT WELL INVESTMENT | Alstria Office vs. ScanSource | Alstria Office vs. National Beverage Corp | Alstria Office vs. Gladstone Investment |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
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 | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Stocks Directory Find actively traded stocks across global markets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |