CVS Health Correlations

CVS Stock

USD 56.39 0.51 0.90%

The current 90-days correlation between CVS Health Corp and Humana Inc is 0.7 (i.e., Poor diversification). The correlation of CVS Health is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

CVS Health Correlation With Market

Modest diversification

The correlation between CVS Health Corp and DJI is 0.22 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CVS Health Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real.

Moving together with CVS Stock

0.74	MRM	Medirom Healthcare	Pair Corr
0.61	NRC	National Research Corp	Pair Corr
0.65	VMD	Viemed Healthcare	Pair Corr
0.61	INMD	InMode	Pair Corr
0.8	JYNT	Joint Corp	Pair Corr
0.63	KIDS	Orthopediatrics Corp	Pair Corr
0.76	LIVN	LivaNova PLC	Pair Corr
0.64	MASS	908 Devices	Pair Corr

Moving against CVS Stock

0.66	AHG	Akso Health Group	Pair Corr
0.32	FIGS	Figs Inc	Pair Corr
0.32	LNSR	LENSAR Inc Trending	Pair Corr
0.31	WGS	GeneDx Holdings Corp	Pair Corr
0.73	PDCO	Patterson Companies	Pair Corr
0.55	AEMD	Aethlon Medical	Pair Corr

Related Correlations Analysis

	HUM	CI	ELV	CNC	UNH	MOH
HUM		0.56	0.49	0.12	0.61	0.07	HUM
CI	0.56		0.78	-0.21	0.95	0.44	CI
ELV	0.49	0.78		0.28	0.79	0.72	ELV
CNC	0.12	-0.21	0.28		-0.18	0.3	CNC
UNH	0.61	0.95	0.79	-0.18		0.44	UNH
MOH	0.07	0.44	0.72	0.3	0.44		MOH
	HUM	CI	ELV	CNC	UNH	MOH

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

UNH	+ 0.95	CI
UNH	+ 0.79	ELV
ELV	+ 0.78	CI
MOH	+ 0.72	ELV
UNH	+ 0.61	HUM
CI	+ 0.56	HUM

High negative correlations

CNC	- 0.21	CI
UNH	- 0.18	CNC

Risk-Adjusted Indicators

There is a big difference between CVS Stock performing well and CVS Health Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze CVS Health's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
HUM	1.88	0.13	0.06	0.18	2.37	(2.05)	4.80	(2.93)	20.91
CI	1.34	(0.10)	0.00	(0.08)	0.00	0.00	2.26	(2.81)	12.85
ELV	1.14	(0.09)	0.00	(0.10)	0.00	0.00	2.67	(1.95)	5.66
CNC	1.50	0.06	0.02	0.19	1.79	(1.57)	3.01	(3.46)	8.22
UNH	1.53	(0.12)	0.00	(0.06)	0.00	0.00	2.99	(5.07)	11.27
MOH	1.90	0.15	0.06	0.36	1.91	(2.28)	3.92	(3.18)	21.99

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